The graph below describes the notion that as tax rates rise from zero percent, tax revenues will:
A. Increase at first, but then decline eventually as tax rate continues rising
B. Decrease at first, but then increase eventually as tax rate continues rising
C. Rise higher and higher
D. Fall lower and lower until it shrinks to zero
A. Increase at first, but then decline eventually as tax rate continues rising
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Intelligent policymaking requires making trade offs, which means
A) accepting unethical but unavoidable compromises. B) giving up what is less valuable for what is more valuable. C) putting one's own interests ahead of the interests of others. D) sacrificing some people's welfare to other people's welfare. E) violating someone's rights.
Which combination of assets represents the most diversification?
A) holding corporate and Treasury bonds B) holding shares of Google and Yahoo C) holding shares of Google and Microsoft D) holding shares of Google along with Treasury bonds
Consider a perfectly competitive firm that can raise its output by 2 units by hiring an additional unit of capital. If the cost of hiring this additional unit of capital is $4 and the market price of the good is $1, the firm will certainly hire this unit of capital. [Hint: MRP = MP X MR]
a. True b. False Indicate whether the statement is true or false
A decrease in the supply of dollars and an increase in the demand for Mexican peso
A. increases the value of the dollar. B. increases the peso price of dollars. C. increases the value of the peso. D. has an indeterminate effect on the exchange rate between dollars and pesos.