The nominal tax rate is
A. Taxes paid divided by total economic income.
B. Equal to the marginal tax rate.
C. Taxes paid divided by taxable income.
D. Lower than the effective tax rate.
Answer: C
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Which of the following are examples of a firm experiencing a positive technological change?
a. A firm is able to reduce its inputs by 15 percent and still produce the same level of output. b. A seminar attended by the firm's workers makes them more productive. c. A firm adds 5 percent to its workforce and is able to maintain its initial level of output. d. A firm restructures its distribution system and is able to save on its shipping times. e. A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level.
If the Fed increased the discount rate,
a. banks would make more loans b. the money supply would increase c. firms would be more likely to seek out loans d. the required reserve ratio would increase e. banks would make fewer loans