Assume that the marginal tax rate is 10 percent for the first $10,000 of income, 20 percent for income between $10,000 and $40,000, and 30 percent for any income over $40,000. If Jerome has taxable income equal to $60,000 for the year, what is his tax bill?

Recent research suggests that if Apple switched from uniform pricing of its iTunes to two-part pricing,

A) total welfare would increase, but consumer surplus would decrease. B) total welfare and consumer surplus would increase. C) total welfare would decrease, but consumers surplus would increase. D) total welfare and consumer surplus would decrease.

An increase in output will tend to

a. increase productivity in the economy as a whole b. reduce prices of non-labor inputs and other commodities in limited supply in the short run c. increase real wage rates d. increase nominal wage rates e. decrease the price level