If the government were to decrease corporate income tax, we would predict a:
A. shift in aggregate demand to the left.
B. downward movement along the aggregate demand curve.
C. shift in aggregate demand to the right.
D. shift straight down of aggregate demand.
Answer: C
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Compute the tax rates for the three taxpayers shown in Table 33.1. Then use the table to answer the indicated question.TaxpayerIncome (Dollars)Taxable Income (Dollars)Taxes Paid (Dollars)Effective Tax Rate(Percent)Nominal Tax Rate(Percent)1$200,000$100,000$6,000________%________%2100,00080,0008,000________%________%360,00048,00012,000________%________%In Table 33.1, the effective tax rate for taxpayer 1 is
A. 8.0 percent. B. 50.0 percent. C. 6.0 percent. D. 3.0 percent.
A consumer is in equilibrium if he or she derives the same
A. total utility from each good consumed. B. total utility per dollar spent on each good consumed. C. marginal utility from each good consumed. D. marginal utility per dollar spent on each good consumed.
When quantity demanded is greater than quantity supplied, there is a _____________.
Fill in the blank(s) with the appropriate word(s).
In order to be binding, a price floor
A) must lie below the free-market equilibrium price. B) must coincide with the free-market equilibrium price. C) must be high enough for firms to earn a profit. D) must lie above the free-market equilibrium price.