When income is $15,000, the amount of income taxes owed is $1,500; when income increases to $20,000, the amount owed increases to $3,000. The average income tax rate when a person earns $15,000 is
A. 10 percent.
B. 20 percent.
C. 75 percent.
D. 13.3 percent.
Answer: A
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When the collective bargaining process fails to produce an acceptable contract, the union can attempt to extract a higher wage from a monopsonist by
a. bringing in more workers b. allowing the workers to negotiate their own individual terms c. shifting the MLC curve downward d. going on strike e. increasing the return to monopsony power
Suppose you camped out in front of an electronics store to be one of the 200 lucky people able to purchase the latest gaming system. You bought the system for $350. Two weeks later you see that the same system can be sold on e-Bay for $600, so you sell your system. Your market role was as a:
A. consumer at the electronics store; the e-Bay transaction did not occur in a market. B. consumer at the electronics store and a seller on e-Bay. C. seller in both markets. D. consumer in both markets.
A small open economy reduces its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________.
A. fall; fall B. remain unchanged; fall C. remain unchanged; rise D. fall; rise
Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________, and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; does not change