Suppose you are paid a wage of $50 per hour. if your marginal income tax rate is 20%, then for every additional hour you work, your tax wedge is
A) $10.
B) $20.
C) $25.
D) $40.
A
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Adding wages, interest, rent, and profits yields
A) net domestic product at factor cost. B) gross domestic product at factor cost. C) total expenditure. D) GNP. E) gross domestic product.
The figure above shows a perfectly competitive firm. If the market price is $20 per unit, then the firm produces ________ units and makes an economic profit that is ________
A) more than 30; more than $100 B) 30; more than $100 C) 20; less than $400 D) 0; zero E) 30; zero
Assume two people live in the same neighborhood, the same size house and earn identical incomes. Both are unmarried without children. How might one of them actually be poorer than the other?
What will be an ideal response?
Adam Smith wrote that the:
a. economic problems of eighteenth-century England were caused by free markets. b. government should control the economy. c. pursuit of private self interest promotes the public interest in a market economy. d. public or collective interest is not promoted by people pursuing their self interest.