An examination of tax rates for federal income tax in the United States demonstrates that for most people, the marginal tax rate is ______.
a. lower than the average tax rate
b. the same as the average tax rate
c. higher than the average tax rate
d. the inverse of the average tax rate
c. higher than the average tax rate
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Two related ways to quantify a person's degree of risk aversion are the certainty equivalent and the risk aversion premium. ?
Answer the following statement true (T) or false (F)
Explain how redistributing income creates a deadweight loss
What will be an ideal response?
Consider a market for coffee that is initially in equilibrium. If tea harvest is bad in a particular year, then identify the most likely impact on the equilibrium price and quantity of coffee.
a. ?The price of coffee will decrease while the quantity of coffee will increase. b. ?There will be no impact on the equilibrium price and quantity of coffee. c. ?The price of coffee will increase, while the quantity of coffee will decrease. d. ?Both the price and the quantity of coffee will increase. e. ?Both the price and the quantity of coffee will decrease
Suppose Aharoni and Kalinga are the only two countries in the world and they produce computers and shoes. Aharoni has 100 workers, and Kalinga has 200 workers. The table below shows the per-day production possibilities for each country. Aharoni has:
What will be an ideal response?