The Laffer curve has proven to be accurate for tax rates above 10 percent.
Answer the following statement true (T) or false (F)
False
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Bobby is offered two fulltime jobs. In the first job, as a salesperson, he has a 50 percent chance to make $2,000 a month and a 50 percent chance to make $10,000 a month. The second job, as a construction worker, pays $4,500 a month with certainty
Bobby's utility of wealth curve is shown in the figure above. Bobby will take the ________ job because his expected ________ from this job is greater. A) first; utility B) second; utility C) second; income D) first; income
For a given return on assets, the lower is bank capital
A) the lower is the return for the owners of the bank. B) the higher is the return for the owners of the bank. C) the lower is the credit risk for the owners of the bank. D) the lower the possibility of bank failure.
The reason individual homeowners usually do not hire a private contractor to fill the potholes on their street is because
a. there are positive externalities associated with the potholes b. the value to the neighborhood exceeds the cost of repair c. it costs them more than the benefits they derive d. they do not trust the government e. there are negative externalities associated with the repair
Table 31.1Wage rate (dollars per hour)Labor demanded (workers)Total labor cost(dollars per hour)Marginal Wage (dollars per worker)$260________---222________________184________________146________________108________________Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates. Complete the table by computing the total wage bill (total labor cost) and the marginal wage. Assume the union collects dues of 1 percent of the total wage bill. At what wage in Table 31.1 would the union maximize the amount of dues it collects?
A. $14 per hour. B. $22 per hour. C. $18 per hour. D. $10 per hour.