A progressive tax is a tax that taxes income so that the average tax rate increases with income

Indicate whether the statement is true or false

TRUE

Economics

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An optimizing consumer makes her purchase decisions based on:

A) the total benefits at various levels of consumption. B) benefits per dollar spent at the margin. C) the total benefits per dollar spent at various levels of consumption. D) the benefits from the first dollar spent on consumption.

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Economics

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Exhibit 30-1

?

A. Curve X, because if there is a negative externality, external costs are associated with it: social costs = external costs + private costs, therefore the marginal social cost curve must lie above the marginal private cost curve. B. Curve Y, because if there is a negative externality, negative external costs are associated with it: social costs = negative external costs + private costs, therefore the marginal social cost curve must lie below the marginal private cost curve. C. Curve X, because if there is a negative externality, external benefits are associated with it: social costs = external benefits + private costs, therefore the marginal social cost curve must lie above the marginal private cost curve. D. Curve Y, because if there is a negative externality, negative external benefits are associated with it: social costs = negative external benefits + private costs, therefore the marginal social cost curve must lie below the marginal private cost curve.

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Economics

An increase in the value of the marginal product of labor has the effect of increasing the

a. demand for labor. b. wage. c. quantity of labor employed. d. All of the above are correct.

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Economics

Which of the following groups believes that the private sector takes actions based on rational expectations to offset policy actions?

A. New classical economists. B. Keynesians. C. Marxists. D. Supply-siders.

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Economics