A mother of three who receives $600 a month in total welfare benefits if she is not working, but who loses all those benefits and also pays 10 percent of her earnings to the tax collector if she takes a job paying $1000 a month, is being taxed on her
earnings at an effective marginal rate of A) 10 percent.
B) 30 percent.
C) 50 percent.
D) 70 percent.
D
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One of the provisions of the second stimulus bill increased the amount of investment spending that firms were allowed to depreciate for tax purposes from 50% to 100%
This is just one of over 100 temporary tax provisions affecting firms in the United States. Temporary tax breaks such as the increase in depreciation will tend to A) increase investment expenditures because the tax breaks will entice firms to leave other countries and invest in the United States. B) have little impact on current investment expenditures since the tax breaks are temporary. C) increase investment expenditures in both the short run and the long run, since investment is irreversible. D) increase investment expenditures in the short run but also increase the uncertainty and volatility of investment since the tax breaks are temporary.
Organizations which have branches in various locations can function efficiently as U-form organizations
Indicate whether the statement is true or false
Comparative advantage is
A) the ability to produce more output from given inputs than another producer can. B) the ability to produce a good at a lower opportunity cost than other producers. C) the ability to produce more output of all goods than anyone else can. D) the ability to produce all goods at lower costs than anyone else can.
An increase in the price of a good causes
A) a change in the slope of the budget line. B) an increase in the consumption of that good. C) a rightward shift of the demand curve for that good. D) a parallel rightward shift of the budget line.