You put money into an account and earn an after-tax real interest rate of 2.5 percent. If the nominal interest rate on the account is 8 percent and the inflation rate is 2 percent, then what is the tax rate?
a. 28.00 percent
b. 36.25 percent
c. 43.75 percent
d. 67.50 percent
c
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Answer the following statement(s) true (T) or false (F)
1. Use of a common property is nonrivalrous. 2. A nonexcludable good, once produced, can be made available to others at no additional cost. 3. Private markets tend to undersupply nonrivalrous goods because of free riding. 4. Once it has been produced, the efficient price for a nonrivalrous good is zero. 5. An HBO broadcast over cable television is rival in consumption but non-excludable.
_______% of the people on welfare lives below the poverty line.
Fill in the blank(s) with the appropriate word(s).
AT&T is an example of a business that used market power to
A. avoid government regulation. B. squash the competition. C. invest in important research benefiting society. D. minimize average costs of production.
A portion of a worker's earnings is economic rent if the worker
A. has skills that make him more productive than an unskilled worker. B. has been on the job for at least a year. C. would accept a small reduction in pay without quitting. D. was the last person hired at the going wage rate.