If s = MPS, and t = income tax rate, the marginal leakage rate is
A) s(1 - t) + t.
B) s -t.
C) s(1 - t).
D) t(1 - s) + t.
A
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Which of the following is an example of technological progress?
A) the invention of the air conditioner B) the invention of LCD televisions C) an increase in corn output resulting from genetic engineering D) all of the above
In order to protect against foreign exchange risk, firms can use
A) the spot market for foreign exchange. B) interest rate arbitrage. C) purchasing power parity. D) the forward market for foreign exchange. E) the J-curve.
When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a loss in total welfare. b. a transfer of benefits from the buyer to the seller. c. the higher marginal costs incurred by the monopolists in comparison to competitive firms. d. All of the above are correct.
A carbon tax placed on coal will ________ the price of coal and ________ the quantity sold of coal.
A. raise; decrease B. raise; increase C. lower; decrease D. lower; increase