If taxes are $2,000 when income is $15,000 and they are $3,000 when income is $19,000, then the marginal tax rate is
A. 20%.
B. 30%.
C. 25%.
D. 40%.
Answer: C
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Refer to Table 13-3. What are the profit-maximizing/loss-minimizing output level and price?
A) Q = 0 (firm should not produce) B) Q = 3; P = $18 C) Q = 4; P = $17 D) Q = 5; P = $16
Which are social costs associated with the inability of shareholders to observe an executive's effort? (You may choose more than one.) a. Excessive insurance offered
b. The executive has to be exposed to risk to induce effort, and risk is costly. c. The executive ends up exerting less than first-best effort. d. Excessive effort induced.
Price discrimination that tends to lessen competition is outlawed by the:
a. Sherman Antitrust Act. b. Clayton Act. c. Federal Trade Commission Act. d. Interstate Commerce Act.
As a larger fraction of the working-age population becomes older and retires,
A. the employment-population ratio increases. B. the labor-force participation rate increases. C. the labor-force participation rate declines. D. the unemployment rate decreases.