Use the following information to answer the next question.C = A + .875(Y - T)A = $10,000I = $2,000G = $2,500T = $1,000NX = $1,025What is the equilibrium level of real GDP?
A. $117,200
B. $116,200
C. $132,200
D. $16,525
Answer: A
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If Mary invests $500 and receives yearly interest of $40, the rate of interest she is earning on her $500 must be
a. 18 percent b. 12.5 percent c. 10 percent d. 15 percent e. 8 percent
Which of the following is correct?
A. Both the federal tax system and the state and local tax systems are regressive. B. The federal tax system is progressive, while the state and local tax systems are regressive. C. The federal tax system is regressive, while the state and local tax systems are progressive. D. Both the federal tax system and the state and local tax systems are progressive.
Refer to the data provided in Table 9.4 below to answer the question(s) that follow. Table 9.4qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 11004014040 40 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.42Refer to Table 9.4. The market price is $84 and this firm is producing four units of output. Which of the following would you recommend to this firm?
A. Increase output to seven units so that price is less than marginal cost. B. Continue producing four units of output, because the firm is able to make an economic profit. C. Increase output to six units, so that marginal cost equals marginal revenue. D. Reduce price to $34, so that marginal cost will equal marginal revenue at 4 units of output.
A decrease in the marginal tax rate, with the average tax rate held constant, will
A. increase the amount of labor supplied at any real wage. B. not affect the amount of labor supplied at any real wage. C. decrease the amount of labor supplied at any real wage. D. increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.