Sketch a typical consumption contract curve in an Edgeworth box for you and her. The two products should be apples and tents. Identify two consumption baskets where you and she are off the contract curve. Label the first point (a) where you value apples much more than she does; label the second point (b) where you value apples much less than she does.

Assuming wages are indexed to inflation, if prices rose by 1.4 percent this month and your last month's wage was $1,000, your wage this month would be $1,014

a. True b. False Indicate whether the statement is true or false

The average tax rate is

A. the total amount of tax paid divided by total income. B. total income divided by the total tax rate. C. taxable income multiplied by the tax rate. D. the marginal tax rate multiplied by the tax base.