If a tax system has no deductions, exemptions, or other loopholes, then the effective tax rate will be
A. Equal to the nominal tax rate.
B. Greater than the nominal tax rate.
C. Less than the nominal tax rate.
D. Equal to the vertical tax rate.
Answer: A
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The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one can of cola if Sweet-tooth Land moves from point C to point B?
A) 20 chocolate bars per can of cola B) 10 chocolate bars per can of cola C) 2 chocolate bars per can of cola D) 1/2 chocolate bars per can of cola
Exhibit 3-2 Demand curves
In Exhibit 3-2, the shift in the demand curve from D1 to D2 could have been caused by which of the following?
A. Decrease in price. B. Increase in expected future prices. C. Increase in the price of a complement. D. Decrease in income if it is a normal good.
In the mid-1970s, the United States switched from running a trade ________ to running a trade ________.
A. deficit; surplus B. surplus; deficit C. balance; surplus D. deficit; balance
If, for a $1000 premium, you buy a $100,000 put option on bond futures with a strike price of 110, and at the expiration date the price is 114, your ________ is ________
A) profit; $1000 B) loss; $1000 C) profit; $3000 D) loss; $3000