Which of the following is the marginal tax rate?
A. The fraction of each additional dollar of income that must be paid in taxes.
B. The total tax paid divided by total income.
C. The tax rate paid by the average taxpayer.
A. The fraction of each additional dollar of income that must be paid in taxes.
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A depression can be defined as: a. a mild reduction in total production coupled with a rising unemployment rate that lasts for several years. b. a mild decline in total production that lasts less than six months
c. a severe fall in stock prices that causes financial panic and lasts for several years. d. a severe reduction in total production coupled with high unemployment that lasts for several years. e. a decline in government spending and taxes that lasts for several months.
The CPI is a commonly used and closely watched measure of inflation. However, it has limitations. What are they?
What will be an ideal response?
The word "fiat" is
A) used to describe today's money because it is money set by law. B) used to describe money from when Kings ruled by decree or fiat. C) the term used to define the concept of barter. D) another word to mean the "double coincidence of wants." E) Latin for "backed by gold."
If a decrease in income leads to an increase in the demand for sardines, then sardines are
A) a necessity. B) an inferior good. C) a normal good. D) a neutral good.