If you earned an extra $2,000 and paid $400 in taxes on that income, what would your marginal tax rate be?
What will be an ideal response?
Marginal tax rate = additional taxes paid/additional taxable income = $400/$2,000 = 20 percent
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Use the following table to answer the next question. Year123456Price Index10095105125125120If output increases by 8% from year 5 to year 6, then in that period ________.
A. real GDP will rise faster than nominal GDP B. real GDP will decrease C. real GDP will rise slower than nominal GDP D. nominal GDP will decrease
Suppose the bobby pin industry is perfectly competitive. The price of a packet of bobby pins is $2.00. Pins and Needles, Inc is a firm in this industry and is producing 1,000 packets of bobby pins per day at the point where the MC = MR
The average cost of production at this output level is $1.50 per packet. a. What is the marginal cost of the 1,000th packet? b. Is this firm making an economic profit, zero economic profit, or an economic loss? How much? c. Is the firm in long-run equilibrium? Why or why not?
As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor declines because
A) there are diseconomies of scale. B) less efficient workers are hired as the number of workers increase. C) workers don't perform well in teams. D) the amount of other inputs each worker has to work with declines as the number of workers increases.
Which of the following is an endogenous variable in our model of the goods market in Chapter 3?
A) consumption (C) B) disposable income (YD) C) saving (S) D) total income (Y) E) all of the above