Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on all income above $70,000
Family A has income of $82,000 while Family B has income of $37,000. What are the marginal tax rates faced by the two families?
Since Family A's income ($82,000 ) is in the last bracket, their marginal tax rate is 40 percent. Since Family B's income ($37,000 ) is in the third bracket, their marginal tax rate is 20 percent.
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Assume someone organizes all farms in the nation into a monopoly. As a result, consumer surplus will
A) not change. B) increase. C) decrease. D) either increase, decrease, or not change depending if the monopoly's marginal revenue curve lies below, above, or is the same as its demand curve. E) None of the above answers is correct because the effect on consumer surplus depends on whether the monopoly is a single-price or a price-discriminating monopoly.
Monopolies are inefficient because, at the profit-maximizing output level,
A) MC = MR. B) MC does not equal MR. C) MB = MC. D) MB does not equal MC. E) P = ATC.
When an economy becomes attractive to global investors, sparking a capital inflow, one result is often a decrease in net exports. Why?
What will be an ideal response?
Business cycles result from recurrent shifts of the aggregate supply and demand curves.
Answer the following statement true (T) or false (F)