Refer to the scenario above. If each family pays 12% of its income as tax every year, the local government follows a(n) ________ tax system

The price of a consol equals the coupon payment

A) times the interest rate. B) plus the interest rate. C) minus the interest rate. D) divided by the interest rate.

A monopolist will hire an additional unit of labor as long as

A) the additional cost of the worker is outweighed by the additional revenues made from selling the output of theses workers. B) the marginal revenue curve is above the demand curve. C) the marginal revenue product is larger than the marginal factor cost. D) the marginal revenue product is less than the marginal factor cost.