What is the marginal tax rate of a lump-sum tax of $5,000?
The marginal tax rate would be $0 because once a person paid the lump-sum tax of $5,000, she would pay no additional tax on the next dollar earned.
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When the yuan per dollar real exchange rate appreciates:
A) the U.S. net exports to China increase while the Chinese net exports to U.S. decrease. B) both the U.S. net exports to China and the Chinese net exports to the U.S. decrease. C) the U.S. net exports to China decrease while the Chinese net exports to U.S. increase. D) both the U.S. net exports to China and the Chinese net exports to the U.S. increase.
A firm's total variable cost (TVC) is defined as a cost that
A) does not change (is not "variable") as the firm changes its output. B) changes as the firm changes its output. C) falls as the firm increases its output. D) varies only when the firm reaches the long run.
If the U.S. inflation rate falls relative to the Mexican inflation rate, which of the following will happen in the market for pesos?
a. A rightward shift of the demand curve, a leftward shift of the supply curve, and an appreciation of the peso b. A leftward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso c. A leftward shift of the demand curve, a leftward shift of the supply curve, and a depreciation of the peso d. A rightward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso e. A leftward shift of the demand curve, a rightward shift of the supply curve, and a depreciation of the peso.
Changes in exchange rates are usually expressed in percentage terms.The percentage rate of appreciation for one currency will be close to the rate of depreciation for the other nation whenever:
a. the change in the rate is very small. b. the exchange rates are very different in quantitative terms. c. the change in the rate is very large. d. one exchange rate is 50% more than the other one at the time of the change