Suppose the tax amount on the first $10,000 income is $0; $2000 on the next $20,000; $4000 on the next $20,000; $6000 on the next $30,000; and 40 percent on any income over $80,000. Family A has income of $30,000 and Family B has income of $80,000. What is the marginal and average tax rate for each family?
A. Family A: marginal-10 percent; average-10 percent; Family B: marginal-40 percent; average-40 percent.
B. Family A: marginal-10 percent; average-20 percent; Family B: marginal-30 percent; average-23 percent.
C. Family A: marginal-10 percent; average-15 percent; Family B: marginal-40 percent; average-20 percent.
D. Family A: marginal-10 percent; average-6.7 percent; Family B: marginal-20 percent; average-15 percent.
Answer: D
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If Angelo's Pizza Restaurant has a constant marginal cost of $100 for each additional table in the restaurant and a constant marginal cost of $40 for operating each additional table, what is Angelo's long-run marginal cost per table?
A) $100 B) $60 C) $40 D) $140
Which of the following is characteristic of a perfectly competitive market?
a. There is free entry into and exit from the market. b. Individual firms can exert a perceptible influence on the market price. c. The firms in the market produce differentiated products. d. All of these are true.
Scarcity arises because of
a. international trade disputes b. our unwillingness to share earth's bounty c. insatiable wants d. limited natural resources e. primitive technology
If the U.S. were to revert to a gold standard, trade deficits would:
A. result in higher domestic interest rates. B. quickly disappear. C. result in high inflation. D. result in gold reserves in the U.S. increasing.