If your income increases from $10,000 per year to $14,000 per year and your tax payment increases from $2,000 to $2,840, the marginal tax rate
A. is 21%.
B. is 25%.
C. is 20%.
D. cannot be determined from the given data.
Answer: A
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An option is a contract that always
A. gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B. gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C. states that the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D. gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
Year 2 nominal GDP is
A) $200. B) $270. C) $310. D) $390.
Each of the following is implied if we say that transactions costs are absent EXCEPT:
A. sellers can easily communicate their prices. B. buyers can easily locate suppliers and learn their prices. C. buyers and sellers can arrange transactions without significant obstacles. D. sellers do not charge a markup over marginal cost.
If the real interest rate is 6.8% and the inflation rate is 3.9%, what is the nominal interest rate?