If you pay $14,000 in taxes on an income of $125,000, and $17,400 in taxes on an income of $144,000, what is your marginal tax rate? Show your work
What will be an ideal response?
Marginal tax rate = ($17,400 - $14,000 )/($144,000 - $125,000 ) = 0.179 or 17.9 percent.
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Many government regulations are law because small groups receive large benefits from them
Indicate whether the statement is true or false
A technological improvement that lowers production costs for Good A will shift: a. the supply curve for A to the left
b. the demand curve for A to the left. c. the demand curve for A to the right. d. the supply curve for A to the right.
Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. Suppose that Argentina changes its exchange rate to P3 = $US1. Now what is the peso value of Argentina's total external wealth?
A) -270 billion pesos B) -150 billion pesos C) 0 D) -210 billion pesos
Which component of aggregate demand is involved in the wealth effect caused by a price level change?
a. government purchases b. investment c. consumption d. disposable income