A cut in the income tax rate ________ the tax wedge and ________ employment, saving, and investment
A) decreases; increases
B) increases; increases
C) does not change; increases
D) decreases; does not change
E) increases; decreases
A
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The idea that because of scarcity, producing more of one good or service means producing less of another good or service refers to the economic concept of
A) trade-off. B) equity. C) efficiency. D) optimization.
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer
What is the annual economic profit of her cookie jar business? a. $36,000 b. $35,950 c. $30,000 d. $29,950