The average tax rate is calculated as
A) total income divided by the total tax paid.
B) the change in income divided by the change in total tax paid.
C) total tax paid divided by total income.
D) the change in total tax paid divided by the change in income.
Question 2
Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will increase.
B) GDP will decrease.
C) GDP will not change.
D) GDP may increase or may decrease depending on inflation.
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