The average tax rate measures the
a. fraction of spending paid in taxes.
b. fraction of income paid in taxes.
c. incremental rate of tax on income.
d. average deadweight loss from all taxes.
b
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In the United States, all of the following are deductions generally allowed by the IRS on individual income taxes except
A) mortgage interest. B) charitable contributions. C) contributions to retirement plans. D) rent payments.
An economic forecast will always yield an accurate forecast
Indicate whether the statement is true or false
Economists use the term supply to refer to the amount of some good or service a customer is willing to supply at each price.
Select whether the statement is true or false. A. True B. False
Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Suppose Steven was able to purchase a ticket at the box office for $60. Steven's reservation price for the ticket is $65. If Steven attends "Mamma Mia!" and Ingrid does not, then this situation is:
A. efficient because Steven arrived at the ticket counter before the show was sold out. B. inefficient because Ingrid would have enjoyed the show too. C. efficient because Steven paid less for the ticket than his reservation price. D. inefficient because Steven and Ingrid could have made a mutually beneficial trade.