If a 10% increase in price decreases the quantity demanded by 12%, the price elasticity of demand is 1.2.
Answer the following statement true (T) or false (F)
True
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Pat calculates that for every extra dollar she earns, she owes the government 40 cents. Her total income now is $44,000 . on which she pays taxes of $11,000 . Determine her average tax rate and her marginal tax rate
a. Her average tax rate is 40 percent and her marginal tax rate is 25 percent. b. Her average tax rate is 40 percent and her marginal tax rate is 40 percent. c. Her average tax rate is 25 percent and her marginal tax rate is 25 percent. d. Her average tax rate is 25 percent and her marginal tax rate is 40 percent.
Under a floating exchange-rate regime with a low degree of capital mobility, a change in the exchange-rate value of domestic currency following expansionary fiscal policy will tend to
A. cause a deficit in the financial account. B. decrease the country's holdings of official reserve assets. C. deteriorate the current account. D. give a trade-based stimulus to domestic production.
According to the World Bank, nearly 40 percent of the people on earth subsist on incomes of less than $3 per day.
Answer the following statement true (T) or false (F)
When you produce cars, it is enormously expensive to produce one car, but ultimately the costs per car decrease as more are produced. This would be an example of:
A. decreasing marginal opportunity costs. B. constant marginal opportunity costs. C. increasing returns to scale. D. increasing marginal opportunity costs.