Suppose There Is a Linear Relationship Between National Income and Total

question 91

Multiple Choice

Suppose there is a linear relationship between national income and total tax revenue.If national income is $100 million,then $25 million is collected as tax revenue .If national income is $200 million,then $40 million is collected in tax revenue.What is the marginal response in tax revenue to a change in national income?

• A)15 million
• B)0.15 million
• C)15
• D)0.15
• E)-15

---

Definitions:

Wage Rates

The standard amount of compensation individuals receive in exchange for their labor, usually expressed per hour or year.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

MRP Curves

Marginal Revenue Product curves, which depict the additional revenue generated by employing one more unit of a resource, such as labor or capital.

Manufacturing Jobs

Positions in the workforce that involve working in factories, plants, or anywhere goods are produced in large quantities.