The average tax rate faced by an individual is the ________
A) total tax paid by her divided by the total income earned
B) total revenue received by the government divided by the number of taxpayers
C) percentage of the last dollar earned that a household pays as a tax
D) difference between the highest tax rate and the lowest tax rate
A
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A household's reservation wage is the ________
A) lowest wage rate at which the household will supply labor B) wage at which the household's labor supply curve bends backward C) wage rate at which the household's income is largest D) highest wage rate at which the household will supply labor
When the consumption of a good generates an external benefit:
a. the private benefit consumers receive from the good will be higher than the true social benefit. b. too much of the good will tend to be produced from the viewpoint of economic efficiency. c. the community generally suffers an exactly offsetting external cost from the production of the good. d. the market demand curve will understate the total benefits derived from consumption of the good, and as a result, too little of it will be produced and consumed.