The purchasing power parity theory is useful in making ____ predictions about exchange rates and their fluctuations.

Which of the following would lead to a rightward shift in the demand curve for golf balls?

a. An increase in the price of golf clubs b. A decrease in the popularity of golf c. An increase in the number of golfers d. A decrease in the price of golf balls e. An increase in the golf club membership fee

Suppose a country imposes a lump-sum income tax of $5,000 on each individual in the country. What is the marginal income tax rate for an individual who earns $40,000 during the year?

a. 0% b. 10% c. More than 10% d. The marginal tax rate cannot be determined without knowing the entire tax schedule.