James earns income of $90,000 per year. His average tax rate is 40percent. James paid $5,500 in taxes on the first $40,000 he earned. What was the marginal tax rate on the rest of his income?
a. 6.1 percent
b. 44 percent
c. 55 percent
d. 61 percent
d
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Holding the price of a firm's output constant, if the marginal product of labor increases
A) the marginal products of other inputs also increase. B) the marginal revenue product of labor also increases. C) the marginal revenue product of labor may increase or decrease. D) the marginal revenue product of labor decreases.
Grocery stores often replace
A) low profit margin goods with services. B) low profit margin goods with high profit margin goods. C) high profit margin goods with low profit margin goods. D) goods with one type of elasticity with goods of similar elasticities.
If Lisa Beth needs special film for her expensive new camera, then for her these two goods are
a. substitute b. complementary c. unit elastic d. elastic e. inelastic
Suppose someone offers Max the following gamble: with probability 0.50 he will win $10 and with probability 0.50 he will lose $8. The expected value of this gamble is:
A. $1. B. $2. C. $0. D. $5.