Assume the marginal tax rate is 10 percent for the first $30,000 of income, 15 percent for income between $30,000 and $70,000, and 20 percent for any income over $70,000. If Emily has taxable income equal to $80,000 for the year, what is her tax bill?
A. $16,000.
B. $8,000.
C. $12,000.
D. $11,000.
Answer: D
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A) decrease; appreciate B) increase; depreciate C) decrease; depreciate D) increase; appreciate
Easterlin (1968, 1987) argues that as the relative price of children rises,
(a) the average household demands fewer of them. (b) society, at large, demands fewer of them. (c) society, at large, demands more of them. (d) nothing happens since the demand for children is not influenced by price.
Which of the following observations concerning poverty rates in America is true?
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The usual results of an adverse supply shock are
a. a rise in prices and a fall in output. b. a fall in prices and a rise in output. c. increased growth and lower inflation. d. higher net exports.