The following data represent a personal income tax schedule. Answer the next question on the basis of this information.Taxable IncomeTotal Tax$15,000$1,50030,0003,50060,0009,000120,00035,000As income increases, the marginal tax rate
A. has no definite pattern.
B. increases.
C. remains constant.
D. decreases.
Answer: B
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The CPI market basket
A) weights the goods and services according to the budget of an average urban household. B) determines the best possible way of taxing the average urban household. C) determines how the spending patterns of the average urban household change from month to month. D) determines how spending patterns change from urban household to urban household. E) changes from one month to the next in order to calculate the CPI.
Net investment
A) equals gross investment plus depreciation. B) is the only measure of investment used to calculate GDP. C) equals gross investment minus depreciation. D) is equivalent to the existing capital stock in the economy.
The short run is
A. a period of time during which all inputs can be changed. B. a period of time during which no inputs can be changed. C. a period of time during which at least one input cannot be changed. D. a period of time shorter than one year.
________ was the major system of exchange rate determination before 1914.
A. The gold standard B. The managed-floating system C. The freely-floating system D. The Bretton Woods system