If the marginal tax rate exceeds the average tax rate, the tax would be
A. proportional.
B. regressive.
C. progressive.
D. uniform.
Answer: C
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Use the information below to explain adjustments that move the economy to a long-run equilibrium. Assume that firms and workers have adaptive expectations
The current unemployment rate = 4%. The natural rate of unemployment = 6%. Last year's inflation rate = 3%. This year's inflation rate = 4%.
Suppose that the government sets a minimum price for soybeans at $5 a pound above the equilibrium price. This leads to a quantity traded:
A. at the equilibrium quantity. B. below the equilibrium quantity. C. above the equilibrium quantity. D. There is not sufficient information.
Accounting profits are calculated based upon: a. explicit cash receipts and implicit costs
b. actual cash receipts and actual expenditures of cash. c. implicit cash receipts and actual expenditures of cash. d. opportunity costs plus explicit costs.
You should invest if a new project if
A) the NPV is equal to 1. B) the NPV is positive. C) the NPV is equal to the discount rate. D) none of these choices.