For an impure consumption good the maximum output is determined where_____.
a. price equals marginal cost
b. marginal cost equals the vertical summation of all individual demand curves
c. price equals long run average total cost
d. marginal cost equals the horizontal summation of all individual demand curves
Question 2
In any given year, many people at the tails of the income distribution are only there temporarily _____.
a. because of changes in the tax code
b. making it difficult to track them for determining progressivity
c. thereby overstating the progressive nature of the tax system
d. making it important to look at the progressivity of the tax system in terms of lifetime income
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