Q1. What are the marginal income tax rates and levels paid for different income levels? How much income gets you into the top quartile or quintile? Discuss the issues of regressive, proportional, and progressive taxation. Justify how much your marginal rate should rise and what actions such a rise would cause you to take.
Q2. Suppose the market for widgets is perfectly competitive. Furthermore, suppose the total cost curve for a typical firm in this market is TC = 309 + 4q2 where q represents the quantity of widgets sold by a single supplier. Suppose that there are 31 sellers in this market, sharing a market demand given by P = 1378 - 3Q, where P represents price per widget and Q represents the market quantity of widgets sold.
What is the short-run equilibrium quantity in this market?