Refer to Figure 10.1. The minimum feasible price is ________

Equilibrium in the labor market

A) cannot occur if the production function is shifting upward. B) can happen only when actual GDP exceeds potential GDP. C) means that resources are allocated inefficiently D) occurs when actual GDP is equal to potential GDP

Assume that Mr. Smith's income increased from $40,000 last year to $45,000 this year and that he paid an additional $2,000 in taxes. This would indicate that his marginal tax rate is

A) 10 percent. B) 25 percent. C) 30 percent. D) 40 percent.