A Downward- Sloping LRAC Curve Will Shift Downward Because of

question 47

Multiple Choice

A downward- sloping LRAC curve will shift downward because of

• A)the use of large,specialized machinery as the volume of output increases.
• B)specialization.
• C)a decrease in factor prices.
• D)economies of scale.
• E)factor substitution.

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Definitions:

Federal Income Tax

Tax levied by the national government on the annual income of individuals, corporations, trusts, and other legal entities.

Income Distribution

How a nation's total GDP is distributed amongst its population, often used to analyze economic inequality.

Tax Deductible Donation

A charitable contribution that can be subtracted from one's gross income, lowering the taxable income and thus reducing the tax liability.

Marginal Tax Rate

The marginal tax rate is the percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate paid on the last dollar of income.