If the Demand for a Good Increases, It Is Likely

question 44

Multiple Choice

If the demand for a good increases, it is likely that the demand for the factors of production used as its inputs will:

• A)decrease.
• B)increase.
• C)stay the same.
• D)either increase or decrease.

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Definitions:

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, representing the tax rate applicable to the highest dollar of an individual's income.

Personal Income Tax

A tax that individuals pay on their income to the government, often levied at progressive rates where the tax rate increases as income increases.

Income

The money received by an individual or business in exchange for providing a good or service or through investing capital.

Marginal Tax Rate

The amount of tax paid on an additional dollar of income, used in progressive tax systems to ensure higher incomes are taxed at higher rates.