Suppose a taxpayer has an income of $50,000 and a taxable income of $45,000, and pays $5,000 in taxes. If the taxpayer talks of being taxed at a 10 percent tax rate, she is referring to the
A. Nominal tax rate.
B. Average tax rate.
C. Marginal tax rate.
D. Effective tax rate.
Answer: D
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The fact that wants cannot be fully satisfied with available resources reflects the definition of
A) the what tradeoff. B) scarcity. C) the big tradeoff. D) for whom to produce.
Refer to Table 7-2. Select the statement that accurately interprets the data in the table
A) Madison has an absolute advantage in making empanadas and tacos. B) Austin has an absolute advantage in making empanadas and tacos. C) Madison has an absolute advantage in making empanadas and Austin has an absolute advantage in making tacos. D) Madison has an absolute advantage in making tacos and Austin has an absolute advantage in making empanadas.
When fiscal policy makers wish to reduce aggregate demand, they could enact:
A. contractionary fiscal policy. B. expansionary fiscal policy. C. contractionary monetary policy. D. expansionary monetary policy.
Tom was out shopping for a sweater and learned that they will all go on sale tomorrow. We would expect Tom's demand for sweaters today to:
A. shift to the right. B. increase. C. move down along his demand curve. D. shift to the left.