A higher price for a good will cause the budget constraint to rotate toward the origin
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements about the classical model of the economy is FALSE?
A) Individuals pursue the public interest, not their own self-interest. B) The economy will always move toward, or be at, full employment. C) Savings and investment will always be equal. D) Wages and prices are flexible.
Which will be TRUE for a monopolistic competitor experiencing short-run losses?
A) P > ATC B) P = ATC C) P < ATC D) P < MC
Total surplus measures the
a. loss to buyers from paying higher prices plus the benefit to sellers from receiving lower prices. b. buyers' willingness to pay less the sellers' costs. c. fairness of the distribution of resources in society. d. value to the government of goods and services sold in society.
Maurice faces a progressive federal income tax structure that has the following marginal tax rates: 0 percent on the first $10,000 . 10 percent on the next $10,000 . 15 percent on the next $10,000 . 25 percent on the next $10,000 . and 50 percent on all additional income. In addition, he must pay 5 percent of his income in state income tax and 15.3 percent of his labor income in federal payroll taxes. Maurice earns $60,000 per year in salary and another $10,000 per year in non-labor income. What is his average tax rate?
a. 17.19 percent b. 46.69 percent c. 48.87 percent d. 56.01 percent