Bert faces a progressive tax structure that has the following marginal tax rates: 0 percent on the first $10,000 . 10 percent on the next $10,000 . 15 percent on the next $10,000 . 25 percent on the next $10,000 . and 50 percent on all additional income. If Bert earns $75,000 . what is his average tax rate?
a. 20 percent
b. 25 percent
c. 30 percent
d. 36.67 percent
c
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What is the difference between a monopoly's marginal revenue curve and a perfect competitor's marginal revenue curve?
What will be an ideal response?
Which of the following best describes efficiency in the demand and supply model?
a. The economy is receiving as much benefit as possible from its scarce resources and all the possible gains from trade have been achieved. b. The economy is receiving as much benefit as possible from its scarce resources but not achieving all the possible gains from trade. c. The economy is not receiving as much benefit as possible from its scarce resources but is getting all the possible gains from trade. d. The economy is not receiving as much benefit as possible from its scarce resources and not achieving all the possible gains from trade.
According to the Coase theorem, there will be an efficient solution to the problem of toxic waste: a. if the creator of the toxic waste is assigned the property right and the bargaining costs are high. b. if the victim of toxic waste is assigned the property right and the bargaining costs are high. c. regardless of which party is assigned the property right if bargaining costs are small
d. if the property rights are shared equally between the creator and the victim of the toxic waste.
Refer to Table 5.1, which shows Madeline's preference ranking for various consumption bundles of bread and soup, where 1 represents her first choice, 2 her second, and so on. If the price of soup is $3 per bowl, the price of bread is $3 per loaf and Madeline's income is $9 per day, which combination of bread and soup will she choose?
A. 2 loaves of bread and 1 bowl of soup
B. 1 loaf of bread and 2 bowls of soup
C. 3 loaves of bread and 0 bowls of soup
D. 0 loaves of bread and 3 bowls of soup