Suppose Mr. Lee has total income of $120,000, has taxable income of $90,000, and pays $30,000 in taxes. Considering the information, what is Mr. Lee's effective tax rate?
A. 33.33 percent.
B. 72 percent.
C. 25 percent.
D. 66.7 percent.
Answer: C
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If the marginal cost curve is below the average variable cost curve, then
A) average variable cost is increasing. B) marginal cost must be decreasing. C) average variable cost could either be increasing or decreasing. D) average variable cost is decreasing.
Using the GG-LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports
What will be an ideal response?
The Phillips curve reflects
a. the short-run tradeoff between inflation and unemployment b. short- and long-run tradeoffs between unemployment and inflation c. the long-run tradeoff between inflation and unemployment d. the income distribution effects of inflation e. short-run fluctuations in GDP
The Fed can influence:
A. the budget of the federal government. B. the household savings rate. C. U.S. tax rates. D. the U.S. money supply.