Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000 . and her expenses for the business were $15,000 . When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting
business. Julia's economic profits are
a. $160,000.
b. $150,000.
c. $135,000.
d. $125,000.
d
Economics
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Marginal propensity to save is equal to the change in ____ divided by the change in ____
a. consumption spending; total income b. saving; total income c. saving; disposable income d. consumption spending; disposable income
Economics
High marginal income tax rates
a. distort incentives to work. b. are used to encourage saving behavior. c. will invariably lead to lower average tax rates. d. are not associated with deadweight losses.
Economics