The federal taxes owed by a taxpayer depend
a. only upon the marginal tax rate on the taxpayer's first $25,000 of income.
b. only upon the marginal tax rate on the taxpayer's last $10,000 of income.
c. upon all the marginal tax rates up to the taxpayer's overall level of income.
d. upon all the marginal tax rates, including those for income levels that exceed the taxpayer's overall level of income.
c
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Refer to the figure at right. Medicare subsidies have increased the price of medical services to Upper P Subscript s. Which of the following statements is true about the effect the Medicare subsidy has had on the consumption of medical services?
A. The amount of medical services provided has remained unchanged as a result of the subsidy. B. The amount of medical services provided has increased from Upper Q 0 to Upper Q Subscript Upper M as a result of the subsidy. C. The amount of medical services provided has increased from Upper Q Subscript d to Upper Q Subscript Upper M as a result of the subsidy. D. The amount of medical services provided has decreased from Upper Q 0 to Upper Q Subscript d as a result of the subsidy.
At its present rate of output, 200 units, a perfectly competitive firm has variable costs of $10,000 and marginal cost of $50, and accepts the market price of $40 per unit. To improve its profit/loss situation, this firm should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
A firm is operating at a scale where diseconomies of scale are present. Which of the following could help explain what that means?
a. The firm is operating at a scale where the average total cost of production is falling as output expands. b. The firm is operating at a scale where total fixed costs are not minimized c. The firm is operating at a scale where average total cost is constant as output expands. d. The firm has grown so large that average total cost increases as output expands.
What is a multiplier? How does the multiplier effect occur?