The average tax rate can be calculated by which of the following formulas?
A) the change in taxes due divided by the change in taxable income
B) the change in taxable income divided by the change in taxes due
C) total taxes due divided by total taxable income
D) total taxable income divided by total taxes due
Ques. 2When people donate money to a charity, they behave
A) rationally if the act gives them satisfaction.
B) irrationally because the act does not benefit anyone.
C) in an unpredictable manner because the act involves no incentive.
D) in a way that only makes themselves worse off.
Ques. 3The market demand curve for a particular good
A) is the horizontal sum of all individual demand curves for the good.
B) may be less than an individual demand curve for the good.
C) may or may not show a direct relationship between price and quantity demanded.
D) will not be affected by any of the determinants of individual demand.
Ques. 4When an external cost exists in the production of a good, firms tend to
A) under-produce the good since society pays these costs.
B) over-produce the good.
C) keep production constant throughout the year.
D) under-allocate resources to the production of the good.
Ques. 5Refer to the above table. Suppose the demand for smartphones rises because more people use the Internet with a smartphone. The new equilibrium price will be
A) 200.
B) 275.
C) more than 275.
D) impossible to be determined given the information.
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