If the marginal tax rate is less than the average tax rate, the tax system is

What does new technology generally do to production?

(A) It lowers cost and decreases supply. (B) It lowers cost and increases supply. (C) It has very little effect on production. (D) It increases cost and decreases supply.

The general-equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that

A) workers in all sectors will face increased wages. B) some workers in the covered sectors will lose their jobs and remain unemployed. C) some workers originally employed in the covered sectors will move to the uncovered sectors, driving down wages in the uncovered sectors. D) all workers will be worse off.