According to the monetarist view, the aggregate supply curve is:
A. Horizontal until full employment is reached and then it becomes vertical.
B. Horizontal at all levels of output.
C. Vertical at the natural rate of unemployment.
D. First horizontal, then upward sloping, and finally vertical.
C. Vertical at the natural rate of unemployment.
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If you purchase one pound of apples the price is $1.50 per pound. If you buy a five pound bag of apples, the cost is $5.00. This is most likely an example of
A) quantity discounts. B) lower marginal cost. C) lower marginal benefit. D) price gouging.
The demand for labor is a derived demand because:
A. the income workers earn adds to the demand for output. B. many workers are self-employed. C. the demand for output comes from the demand for labor. D. the demand for labor comes from the demand for output.
Transferable comparative advantages are:
A. based on factors that can change relatively easily. B. rarely eroded over time. C. becoming more like inherent comparative advantages with technological innovations. D. based on factors that are relatively unchangeable.
The following data represent a personal income tax schedule. Answer the question on the basis of this information. Refer to the table below. The average tax rate at the $60,000 level of income is:
A. 10.0 percent
B. 11.6 percent
C. 15.0 percent
D. 20.8 percent