Refer to Scenario 19.2 below to answer the question(s) that follow.SCENARIO 19.2: An individual earning $40,000 pays $3,200 in taxes. The marginal tax rate on any income earned above $40,000 is 20%.Refer to Scenario 19.2. When this person earns $40,000, her average tax rate is
A. 8%.
B. 12.5%.
C. 20%.
D. indeterminate from this information.
Answer: A
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Private and state universities are substitutes. Which of the following would tend to increase the demand for state universities?
A) A fall in private university tuition B) An increase in private university tuition C) An increase in interest rates on student loans (a complementary good) D) Higher dorm fees at state universities
Compared to a permanent reduction in tax rates, a temporary tax cut will generally
a. exert a larger impact on output and employment because its effects are immediate, long-lasting, and do not add much to the national debt. b. exert a smaller impact on output and employment because the temporary cut will not exert much impact on long-term income or the incentive to earn. c. exert a larger impact on output and employment because the temporary tax cut will lead to a larger budget deficit. d. exert an identical impact on output and employment because the incentive effects will be the same regardless of whether the tax cut is temporary or permanent.
The Fed acts as lender of last resort:
A. when deposit insurance isn't enough or when an institution isn't covered by deposit insurance. B. only when an institution is not covered by deposit insurance but deposit insurance would have been enough. C. for any institution, household, or business, that faces a solvency crisis. D. only when an institution is covered by deposit insurance but deposit insurance isn't enough.
China exports more services than India
Indicate whether the statement is true or false