Use the Following to Answer Question

question 208

Multiple Choice

Use the following to answer question:

-(Figure: Strawberries and Submarines) Use Figure: Strawberries and Submarines.As the economy moves from point A toward point D,it will find that the opportunity cost of each additional submarine:

• A)falls.
• B)rises.
• C)remains unchanged.
• D)doubles.

---

Definitions:

Marginal Tax Bracket

The rate at which the last dollar of a taxpayer's income is taxed, indicating the tax rate applied to their highest portion of income.

Corporate Bond

A debt security issued by a corporation to raise capital, promising to repay the borrowed amount plus interest at a specified future date.

Nikkei

An abbreviation for the Nikkei 225 Stock Average, a leading index of Japanese stocks.