Johnny has been working a lot of overtime during the most current economic boom. As a result, his income is high enough for him to move from the 10 percent tax bracket to the 15 percent tax bracket. So, Johnny pays a higher percentage of a higher income to the government this year. The increased amount paid to the government is an example of:
A. discretionary fiscal policy slowing the economy.
B. discretionary fiscal policy encouraging economic activity.
C. automatic stabilizers slowing the economy.
D. automatic stabilizers encouraging economic activity.
Answer: C
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Cost-benefit analysis requires:
A) choosing the alternative with the least net benefit. B) all costs and benefits to be measured in the same unit. C) evaluating the budget constraint before making a choice. D) that the risks associated with different alternatives are ignored.
West Coast Gas, Inc, is a natural gas supplier. The firm faces the demand schedule shown in the table above and cannot price discriminate
The company's fixed cost is $1,000 per month and its marginal cost is constant at $10 per thousand of cubic feet. The government imposes a marginal cost pricing rule on the company. a) What is the price of natural gas supplied by West Coast Gas? How many cubic feet does the company sell? What is the firm's economic profit per month? b) How does the regulation affect total surplus? c) Is the regulation in the social interest? Explain.
Under which of the following conditions would a cost center be the best option?
a. Always, since they are largely run on their own b. Never, since they require a high degree of the firm's attention c. As long as the cost of monitoring is low d. As long as the benefits from monitoring are low
A bank that has $10,000 in excess reserves can extend new loans up to a maximum of
What will be an ideal response?