The amount of money received in a particular period adjusted for changes in purchasing power is called:
A. nominal income.
B. real income.
C. a cost-of-living index.
D. consumer surplus.
B. real income.
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Explain how patents have been beneficial for markets
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Sue earns income of $80,000 per year. Her average tax rate is 50 percent. Sue paid $5,000 in taxes on the first $30,000 she earned. What was the marginal tax rate on the first $30,000 she earned, and what was the marginal tax rate on the remaining $50,000?
a. 6.25 percent and 50.00 percent, respectively b. 10.00 percent and 70.00 percent, respectively c. 16.67 percent and 60.00 percent, respectively d. 16.67 percent and 70.00 percent, respectively
A tariff can best be described as
A. an excise tax on an imported good. B. a government payment to domestic producers to enable them to sell competitively in world markets. C. an excise tax on an exported good. D. a law that sets a limit upon the amount of a good that can be imported.
The long-run aggregate supply curve is vertical if
A. the Fed follows optimal monetary policy. B. the government follows optimal fiscal policy. C. technology is fixed. D. wages and other costs fully adjust to changes in prices in the long-run.