A decrease in the marginal tax rate, with the average tax rate held constant, will
A. increase the amount of labor supplied at any real wage.
B. not affect the amount of labor supplied at any real wage.
C. decrease the amount of labor supplied at any real wage.
D. increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.
Answer: A
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Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. Which method of allocation best describes the choice to purchase the sets?
A) force B) sharing equally C) command D) majority rule E) lottery
When the price of one good decreases, such as hot dogs, it may also increase the demand for other, related goods, like mustard.
Answer the following statement true (T) or false (F)
An effective price ceiling tends to
A) increase quantity supplied. B) decrease quantity demanded. C) leave quantity supplied and demanded unchanged. D) do none of the above.
When relatively few workers have high ability,
A) they will settle for the average wage. B) they will want to signal their ability. C) the premium for high ability is less than when most workers have high ability. D) they do not need to signal their ability.