The marginal tax rate shows
A. the deductions which are permitted for child care and medical expenses.
B. the extra tax due on an extra dollar of income.
C. the percentage of income which a typical family pays in tax.
D. the average rate of taxation in the economy.
Answer: B
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If the functional finance approach to federal budgeting is followed, the federal government's budget deficit should be zero
a. True b. False Indicate whether the statement is true or false
Assume the price elasticity of demand for MC Pretzel Co. pretzels is 0.8. If the company increases the price of each bag of pretzels, total revenue will
A. Increase because demand is elastic and revenue will rise. B. Increase because the percentage increase in price is greater than the percentage change in quantity demanded. C. Be impossible to predict because the percentage change in price is not known. D. Decrease because fewer bags will be sold.
The slope of the labor demand curve can be attributed to the Law of:
A) Increasing Opportunity Cost. B) Diminishing Marginal Productivity of Labor. C) Increasing Marginal Productivity of Labor. D) Decreasing Opportunity Cost.
If the government ________ taxes to pay for spending on infrastructure, the result will most likely be a(n) ________ in capital deepening
A) decreases; increase B) increases; increase C) increases; decrease D) eliminates; elimination