The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000 . Karen paid $6,000 in taxes. What were her marginal and average tax rates?
a. 20 percent and 12 percent, respectively
b. 20 percent and 15 percent, respectively
c. 10 percent and 12 percent respectively
d. 10 percent and 15 percent respectively
a
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Graphically, a kinked demand curve is
a. more elastic to the right of the kink than to the left b. more inelastic to the right of the kink than to the left c. more inelastic to the left of the kink than to the right d. present when there is a monopoly e. bowed-in or bowed-out, depending on the kink
Government intervention is always preferable to doing nothing when reducing the social inefficiencies of monopoly
a. True b. False Indicate whether the statement is true or false
In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of:
A. scarcity and opportunity costs. B. money and real capital. C. complementary economic goals. D. full production.
Which of the following is NOT an expected benefit of reducing nontariff barriers to trade?
A) Fewer firms to compete with B) Lower prices for many goods C) Increase in the volume of exports and imports D) Improved overall economic welfare