Philip purchased one million dollars' worth of New York City bonds. His interest earnings were $100,000 . His total federal tax on this income will be
a. $40,000 . since his marginal tax rate was 40 percent.
b. $40,000 . since only 40 percent of capital gains is taxed.
c. zero.
d. very small, since he had a clever accountant who knew how to use loopholes.
c
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Who determines the size of the money supply in the U.S.?
A. the Federal Reserve B. the Federal Reserve and the banking system together C. the Federal Reserve and the Treasury Department together D. the Treasury Department
A business produces 5,000 units per month. It spends $12,000 on raw materials. It pays wages of $20,000 . Other costs include $50,000 for rent, paid by the month. In order to break even the selling price per unit will have to be:
a. $25.20 b. $16.4 c. $20.30 d. $28
The change in total revenue that results from a one-unit change in the amount of a variable resource used is
a. average resource cost b. marginal resource cost c. marginal product d. marginal revenue product e. average revenue product
Which of the following statements for a monopolistic competitor in long-run equilibrium is true?
A. (P = ATC) > (MC = MR). B. P > (ATC = MC = MR). C. P > ATC > (MC = MR). D. P = ATC = MC = MR.