Karole's income rises from $50,000 to $75,000 and her income tax increases from $8,000 to $9,500.Her average tax rate is 6%
a. True
b. False
Indicate whether the statement is true or false
False
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Who officially determines whether the economy is in a recession or expansion?
A) The president of the United States B) The U.S. Congress C) The Federal Reserve Board of Governors D) The National Bureau of Economic Research
In the short run, if prices were above equilibrium,
a. excess aggregate demand for goods and services would place downward pressure on prices. b. excess aggregate supply of goods and services would place upward pressure on prices. c. excess aggregate demand for goods and services would place upward pressure on prices. d. excess aggregate supply of goods and services would place downward pressure on prices.
For a Giffen good, the income effect is:
a. less than the substitution effect b. greater than the substitution effect c. in the same direction as the substitution effect d. exactly offset by an equal substitution effect e. none of the above
Why does a monopsonist's marginal expenditure curve lie above the labor supply curve?
What will be an ideal response?