The undesirable effects of bracket creep can be eliminated by indexing marginal tax rates.
Answer the following statement true (T) or false (F)
True
If incomes rise due to inflation, this will move some earners into a higher tax bracket unless tax rates are indexed to the price level.
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If society were to maximize the utility of its best-off member, the final allocation would be
A) perfect equity. B) on the contract curve. C) Pareto-efficient. D) one in which one person gets everything.
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna instead holds an oral auction between the two bidders and one bidder of each type shows up, she earn ___ from the auction
a. Just above $100 b. $100 c. Just above $70 d. $70