A progressive tax system
A. Provides more work incentives than a system with constant marginal tax rates.
B. Promotes more investment than a system with constant marginal tax rates.
C. Means higher marginal tax rates at higher income levels.
D. Means lower marginal tax rates at higher income levels.
Answer: C
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When the Fed wants to raise interest rates after banks have accumulated large amounts of excess reserves, it would
A) increase the interest rate paid on excess reserves. B) increase discount rate. C) increase the required reserve ratio. D) conduct massive open market purchase.
According to the graph shown, if the government decides to restrict trade, a deadweight loss is created equal to area(s):
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. F and H.
B. DFGH.
C. FGH.
D. G.
Firms with union contracts do a large portion of the painting jobs in the county. If the painters' union wins a 12 percent wage increase, what will most likely happen in the non-unionized part of the painters' labor market? a. Nonunion painters will also get 12 percent wage increases
b. There will be no change in the nonunionized part of the painters' labor market because these sectors are not connected. c. Wage rates in the nonunion sector are likely to fall. d. Many nonunion painters will likely find work for a firm with a union contract.
In the game depicted below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm 1Firm 2??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(-5,5)(0,0)A dominant strategy for firm 1 is:
A. high price. B. different from firm 1's secure strategy. C. low price. D. low price and different from firm 1's secure strategy.