Economists use the word investment to refer to the portion of income that is:
A. spent on productive inputs, such as factories, machinery, and inventories.
B. not immediately spent on consumption of goods and services.
C. placed in an individual's savings account.
D. in any interest-bearing account.
A. spent on productive inputs, such as factories, machinery, and inventories.
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What is meant by the marginal tax rate?
A) The highest rate that can be extracted. B) The lowest rate that will still meet the government's revenue requirements. C) The percentage of additional income that is taken by taxes. D) The rate paid by businesses that are just barely able to survive.
In monopolistic competition, firms sell a differentiated product. In perfect competition, firms sell an identical product. How do these markets differ as a result?
What will be an ideal response?