A major tax revision occurred in the 1980s. Between 1981 and 1986, the top marginal tax rate for the federal personal income tax
a. decreased from 70 percent to 20 percent
b. increased from 50 percent to 75 percent
c. decreased from 70 percent to 31 percent
d. increased from 31 percent to 50 percent
e. decreased from 50 percent to 15 percent
C
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In a game, a Nash equilibrium is reached only if the players:
A) understand the game and the payoffs associated with each strategy. B) follow a mixed strategy. C) use backward induction method to develop their strategies. D) have no best response for the choices made by other players.
As you consume additional hamburgers, the relationship between total and marginal utility is that
A) both total and marginal utility increase continuously. B) both total and marginal utility decrease continuously. C) total utility increases, but marginal utility decreases. D) total utility decreases, but marginal utility increases.
In a past fare war, U.S. Air reduced the price of its Charlotte, North Carolina, to New York City round-trip fare from $198 to $138 to match American Airlines. U.S. Air did so reluctantly, saying it would cost the company millions of dollars in revenue
American, on the other hand, believed the fare cut would increase its revenue. What different assumptions about the underlying price elasticity of demand did each airline believe true?
You have just read that the Federal Reserve has increased the money supply to avoid a recession. For a given price level, you would expect the LM curve to
A. shift down and to the right as the real money supply falls. B. shift up and to the left as the real money supply falls. C. shift up and to the left as the real money supply rises. D. shift down and to the right as the real money supply rises.