Increasing the income tax rate ________ the before-tax real wage rate and ________ the after-tax real wage rate
A) lowers; raises
B) raises; raises
C) does not change; raises
D) raises; lowers
E) lowers; lowers
D
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Antitrust activities by the government:
A. can cause inefficiencies. B. are accused of being politically motivated. C. sometimes increase the efficiency of a market. D. All of these statements are true.
Between 1977 and 2004, the inflation-adjusted prices for an array of goods traded between countries __________ while the inflation-adjusted prices for an array of goods not traded between countries _____________________
A) fell; increased. B) rose; increased as well. C) fell; decreased as well. D) rose; decreased.
If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. negative B. positive C. zero D. break-even
A reason why the CPI overstates the cost of living is it
A. makes no attempt to ascertain what average people buy. B. makes no attempt to control for substitution to cheaper goods. C. makes no attempt to update the market basket. D. only measures the effects of inflation on the poor.