If there is a 20 percentage point drop in the maximum capital-gains tax rate, _____percentage points of the increase in the share of the 1 percent can be attributed to the drop in the capital-gains tax rate.
A. 4
B. 36
C. 8
D. 20
Answer: C
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Donuts and coffee are complements. When the price of a donut increases, the demand for coffee ________ and the cross elasticity of demand for coffee with respect to the price of a donut is ________
A) decreases; negative B) increases; negative C) increases; positive D) decreases; positive
Explain why correlation does not always imply causation. Does causation always imply positive correlation? Explain your answer
What will be an ideal response?
Poverty and inequality in the U.S. are well below the OECD average
a. True b. False Indicate whether the statement is true or false
A welfare recipient receives $10,000 in benefits when he does not work but receives an income of $15,000 when he works part-time and earns $6,000 in wages. What is the implicit marginal tax rate the recipient faces?
A. 15.5 percent. B. 0 percent. C. 16.6 percent. D. 100 percent.