Figure 2-4 -Refer to Figure 2-4.If This Economy Devotes All of Its

question 293

Multiple Choice

Figure 2-4

-Refer to Figure 2-4.If this economy devotes all of its resources to the production of notepads,then it will produce

• A) 0 notepads and 40 lamps.
• B) 35 notepads and 20 lamps.
• C) 70 notepads and 0 lamps.
• D) 70 notepads and 40 lamps.

---

Definitions:

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Incentive To Work

Factors, such as financial rewards or benefits, that motivate individuals to engage in employment.

Social Security Tax

A tax imposed by the government to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Personal Income Tax

A tax levied on individuals or households based on their income, including wages, dividends, and interest.