If the ________ tax rate equals the ________ tax rate, the tax would be proportional.
A. corporate income; personal income
B. average; variable
C. marginal; average
D. sales; personal income
Answer: C
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Barter eliminates the double coincidence of wants
Indicate whether the statement is true or false
A monopolist sells a lesser quantity at a higher price compared to a perfect competitor
a. True b. False Indicate whether the statement is true or false
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class. CustomerReservation Price($/Book)Q60R54S48T42U36V30W24X18How many books will Campus Books sell if it must charge a single price to all of its customers?
A. 5 B. 3 C. 7 D. 4
As the tax rate increases, the absolute value of the tax multiplier
A. increases. B. does not change. C. decreases. D. could either increase or decrease depending on the value of the MPC.