Income inequality in the United States has increased somewhat over the past 25 years. Two factors that appear to have contributed to this are
A) rapid technological change and expanding international trade.
B) strong economic growth and low inflation.
C) tax cuts on high-income individuals and large increases in prices of stocks.
D) outsourcing of jobs by U.S. firms and cuts in taxes on capital gains.
A
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Using the above table, what is the average product of labor when Jefferson's Cleaners employs six workers?
A) 11 suits per day B) 12 suits per day C) 13 suits per day D) 14 suits per day
A tax on individuals’ earnings is called the:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
Which of the following is most likely to lead to government intervention in the form of price ceilings?
a. advertising b. war c. growth in consumer income d. technological advance in agriculture e. lower resource costs
Suppose Tim's Cowboy boot factory produces in a perfectly competitive market. Suppose the average total cost of cowboy boots is $65, the average variable cost of cowboy boots is $60, and the price of cowboy boots is $62. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm:
A. should shut down. B. should continue to produce since total revenue exceeds total variable cost. C. is earning a positive economic profit. D. can increase profit by increasing output.