Policymakers focus on marginal tax rate changes when making changes in the tax code because the marginal tax rate
A) determines how tax revenue will change as national income increases.
B) determines how much revenue the government will have to spend.
C) always equals the average tax rate which is harder to measure.
D) affects people's willingness to work, save, and invest.
D
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In a zero-sum game, ________
A) each player earns a zero payoff irrespective of the strategy one chooses B) each player has a dominant strategy C) each player chooses a pure strategy D) one player's loss is another player's gain
Mikey likes bagels, so he buys an old pizza shop for $150,000 and spends $10,000 installing new equipment which will allow him to make bagels instead of pizza. How will Mikey's recent purchases affect GDP?
A. Investment will increase $160,000. B. Investment will increase $150,000, and consumption will increase $10,000. C. Consumption will increase $150,000, and investment will increase $10,000. D. Investment will increase $10,000.
Someone wants to open a new restaurant in town. Identify which of the following would be a barrier to entry.
a) None of the available property in town is zoned for business use. b) The price of tablecloths has risen. c) Consumers buy only from businesses they know. d) The town requires all businesses to pay a hefty annual permit fee. e) The town requires new businesses to pay a hefty permit fee.
An AD shift down can be cause by
A) a decrease in government spending. B) an increase in money supply. C) a decrease in the price level. D) an increase in the price level.