Suppose last year Moe faced a 25% marginal tax rate. This year tax rates increased and now Moe faces a 30% marginal tax rate. Moe may choose to work fewer hours this year because:
What will be an ideal response?
Answer: the opportunity cost of leisure-not working-has fallen
You might also like to view...
Many communist dictators ban the adoption of new technologies to:
A) enhance economic growth. B) discourage creative destruction. C) encourage creative destruction. D) reduce inequality in income.
The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100
Indicate whether the statement is true or false
Which of the following is the MOST accurate?
A) U.S. macroeconomic policies in the late 1960s helped cause the breakdown of the Bretton Woods system by early 1973. B) U.S. macroeconomic policies in the late 1970s helped cause the breakdown of the Bretton Woods system by early 1983. C) U.S. macroeconomic policies in the late 1980s helped cause the breakdown of the Bretton Woods system by early 1993. D) U.S. macroeconomic policies in the late 1950s helped cause the breakdown of the Bretton Woods system by early 1963. E) U.S. macroeconomic policies in the late 1960s delayed the breakdown of the Bretton Woods system to early 1973.
What is an example of the bidder's curse?
A) addiction to auctions B) paying less than the auctioned good value C) Bid a value that is higher than the price of the good at a retail store. D) Never win an auction.