The marginal tax rate is
A) the sum of all individual tax rates.
B) the total taxes paid as a percentage of total income.
C) the average tax rate paid by both individuals and corporations.
D) the increase in taxes as a percentage of the increase in income.
Answer: D
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In a situation in which property rights are not well-defined and social costs exceed private costs, government can use all of the following to induce producers to bring private costs into alignment with social costs EXCEPT
A) taxing production. B) coercive limits on production. C) subsidization of production. D) regulation of production.
The total revenue curve for a perfectly competitive firm
a. is a vertical line intersecting the horizontal axis b. is a horizontal line intersecting the vertical axis c. starts part way up the vertical axis, then slopes upward in a backwards-S curve d. is a straight line starting from the origin and sloping upward e. starts at the origin, sloping upward at first and then sloping downward
Which of the following is true?
a. The actual result of changing behavior following the rule of rational choice will always make people better off. b. The actual result of changing behavior following the rule of rational choice will never make people better off. c. In terms of the rule of rational choice, zero levels of pollution would be far too costly in terms of what we would have to give up to achieve them. d. The rule of rational choice implies that it is impossible to be too safe.
Opponents of free trade often want the United States to prohibit the import of goods made in overseas factories that pay wages below the U.S. minimum wage. Prohibiting such goods is likely to
a. cause these factories to pay the U.S. minimum wage. b. increase the rate of technological advance in poor countries so that they can afford to pay higher wages. c. increase poverty in poor countries and benefit U.S. firms which compete with these imports. d. harm U.S. firms which compete with these imports.