Assume that Jamal is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, Jamal loses $35 in food stamps and $20 in Medicaid benefits. Also, Jamal's income is taxed at a rate of 10%. Then, Jamal's total tax rate is
a. 45 percent
b. 55 percent
c. 65 percent
d. 70 percent
C
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The inverse trade-off between inflation and unemployment is known as the:
a. Laffer curve. b. aggregate supply curve. c. Phillips curve. d. aggregate demand curve. e. Keynesian curve.
The reason firms often choose sales maximization as a goal is because
a. that is where profits are maximized. b. it is impossible to maximize profits. c. firms are managed and owned by different groups of people with different goals. d. owners believe setting price/output to maximize profits is unfair to consumers.
Which of the following statements about natural monopoly is correct?
A. Governments regulate natural monopolies in order to keep their workers from earning wages that are too high. B. Governments regulate natural monopolies in order to prevent them from making profits. C. Governments regulate natural monopolies in order to ensure that costs of production are minimized. D. Governments regulate natural monopolies in order to ensure that the firm earns a normal profit.
The precautionary demand for holding money arises because
A) people want be able to make unexpected purchases or to meet emergencies. B) credit cards charge low interest rates, which makes money more attractive than credit. C) expected transactions are completed more easily with debit cards than with credit cards. D) people would rather hold money in the form of time deposits than in the form of hard currency.