The excess burden of an income tax is a function of the _____
a. average tax rate
b. flat tax rate
c. marginal tax rate
d. Laffer curve
c
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Use the figure below to answer the following question.
What is the amount of producer surplus after the government imposes the excise tax on the market?
A. $162 B. $540 C. $486 D. $180
If AC < p where MR = MC
A) firms earn positive profits and new firms will enter. B) firms earn negative profits and existing firms will leave. C) firms earn zero profits and new firms will not enter and no existing firms will leave. D) None of the above.
Rational self-interest means
A) always increasing your wealth. B) pursuing what makes you better off. C) pursuing activities that maximize income. D) always pursuing activities that are consistent with your faith.
The interest rate is the
a. rate of investment. b. price of credit. c. rate of return on investment in capital goods. d. expected rate of inflation.