Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. If income increases from $60,000 to $80,000, the marginal tax rate is
A. 5%.
B. 20%.
C. 35%.
D. indeterminate from this information.
Answer: C
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Inefficient allocation of resources occurs when
A. no one can be made better off without having someone else give up something. B. it is possible to make some people better off without making others worse off. C. society is operating at a point high on the production possibilities frontier. D. society is operating at a point low on the production possibilities frontier.
It is consistent with utility maximization for Juan to buy a $2 strawberry and papaya smoothie, for which he gets 20 units of marginal utility, instead of a $1.50 pizza slice for which he gets 10 units of marginal utility
Indicate whether the statement is true or false
Farmers cannot individually affect market price because
A. There is an infinite demand for their goods. B. Demand is perfectly inelastic for the farmer's produce. C. The government exercises control over the market power of competitive firms. D. Their individual production is insignificant relative to the production of the market.
Entrepreneurs directly do all of the following EXCEPT
A) create new ideas about what and how to produce. B) make business decisions. C) face risks that arise from making business decisions. D) decide for whom goods and services are produced.