Which of the following statements is correct?
a. The average tax rate gauges the sacrifice made by a taxpayer, whereas the marginal tax rate gauges the distortion of taxes on consumer decisions.
b. The marginal tax rate gauges the sacrifice made by a taxpayer, whereas the average tax rate gauges the distortion of taxes on consumer decisions.
c. The average tax rate measures how much the tax system discourages people from working.
d. The marginal tax rate measures total taxes paid divided by total income.
a
You might also like to view...
In the long run, following a combination of a negative demand shock and a temporary negative supply shock, ________
A) both inflation and output return to the original long-run equilibrium values B) inflation is permanently increased, while output returns to potential output C) output returns to potential output, while inflation may be higher or lower than its initial value D) inflation is permanently reduced, while output returns to potential output E) none of the above
Many theme parks charge an entrance fee and a per-ride fee equal to zero. This is an example of
A) bundling. B) a two-tier tariff. C) multimarket price discrimination. D) perfect price discrimination.
If a U.S. importer has to write a $200 check to cover a 20,000 yen purchase from Japan, the exchange rate is
A. 200 yen to a dollar. B. 100 yen to a dollar. C. 20 yen to a dollar. D. 10 yen to a dollar.
The monopolist and the perfect competitor are similar in that
A. both operate at the minimum of the ATC curve. B. both have close substitutes. C. both types of markets have no barriers to entry. D. both produce at an output level where MC = MR.