an increase in marginal tax rates will
What will be an ideal response?
reduce the share of additional earnings that individuals are permitted to keep
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The marginal revenue curve for a perfectly competitive firm is
A) an upward sloping curve. B) a downward sloping curve. C) a horizontal line. D) None of the above answers is correct.
The weighted average of all possible outcomes of a project, with the probabilities of the outcomes used as weights, is known as the
A) variance. B) standard deviation. C) expected value. D) coefficient of variation.
What is a normal good?
a. A good whose demand increases when income decreases b. A good whose demand decreases when income decreases c. A good whose demand increases when price increases d. Both B&C
A perfectly competitive steel mill that produces large amounts of pollution (a negative externality) will, from a social point of view,
a. produce too little steel. b. produce the socially optimal quantity of steel. c. produce too much steel. d. produce too much steel only if it installs pollution control equipment.