By looking at the graph for payroll tax, we can see that the wages a worker actually gets paid after the payroll tax is ______.
a. lower than they would receive without the payroll tax
b. higher than it was before the payroll tax
c. immune to any effects of the payroll tax
d. reduced by a small fraction of the firm’s share of payroll tax
a. lower than they would receive without the payroll tax
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If the real interest rate is 5% and the inflation rate is 3%, then the nominal interest rate is 8%
a. True b. False Indicate whether the statement is true or false
When there is a resource for which property rights are NOT well defined and there is a difference between private costs and social costs, then all but which of the following is a way to close the difference?
A. subsidization B. taxation C. regulation D. the free market system
If employers were made responsible for injuries suffered by employees while working at home:
A. there might be an adverse selection problem since employers have better information about the safety conditions of their employees than the employees have themselves. B. employers would never permit employees to work at home. C. there might be an adverse selection problem since employees have better information about the safety conditions of their own homes than employers do. D. more employees would be able to work safely at home.
If a monopoly firm is at a level of output where MC equals $10 and is increasing, MR equals $10, and average variable cost equals $9 . To maximize profits, the firm should: a. increase both output and price
b. increase output but decrease the price. c. decrease output and increase the price. d. not change either the output or the price.