Which of the following does not explain the rise in income inequality in the United States?   An increase in minimum wages An increase in the share that goes to those at the very top in an industry. Increased international trade with low-wage countries Changes in technology

Income Tax rate $0 to $40,000 25% $40,000 to $100,000 40% Over $100,000 60%   What is the effective tax rate if you earned $200,000? 47% 52% 58%    60%  

The forces that make market economies work are work and play politics and policies supply and demand taxes and government intervention

What is not a factor that can cause a  shift in the SUPPLY of a good? Subsidies Technology Price of Related goods Resource Costs

Which of the following can lead to failure of the free market? externalities and market power externalities but not market power market power but not externalities neither externalities nor market power

An agreement among firms regarding price and/or production levels is called   a free-trade arrangement collusion a Nash agreement an antitrust market

In less than two years in the early 1920s, the cost of a German newspaper rose from 30 marks to 70,000,000 marks. This is a spectacular example of market power caused by a change in the country’s standard of living market power caused by a single firm controlling the newspaper production inflation caused by increased productivity in the economy inflation caused by an increase in the quantity of money in the economy

All points on an indifference curve indicate 1. equal cost 2. equal utility 3. equal profit 4. equal income

The downward­ sloping line on the figure represents a consumer’s budget constraint If the consumer’s income is $140, then what is the price of a CD?   $5 $7 $9 $3

Suppose we observe that the outcome of the game is one in which each company earns a profit of $10 million. This outcome   is the result of cooperation between the two companies, and we know that a cooperative outcome is easy in a game such as this one is the result of cooperation between the two companies, and we know that a cooperative outcome is difficult in a game such as this one is the most likely outcome of the game, regardless of whether the two companies cooperate is the result of each company pursuing its dominant strategy