1. If personal income up to and including $20,000 is not taxed, income of $20,001 to $40,000 is taxed at 20%, and income over $40,000 is taxed at 30%, then a family earning an income of $145,348 will pay________ in personal taxes.

2. Suppose the market for gasoline is in equilibrium. You have heard that the price of crude oil (input in gasoline) is rising because of production interruption by a hurricane. You are also aware that the number of car and truck drivers is steadily declining. Knowing this, you predict that the price of gasoline will _____ and the quantity of gasoline bought and sold will _____.

A.fallrise

B.risefall

C.fallrise or fall

D.riseorfallfall

3.The market for beef is in long-run equilibrium at a price of $4.50 per pound. The announcement that mad cow disease has been discovered in the United States reduces the demand for beef sharply, and the price falls to $3.69 per pound. If the long-run supply curve is horizontal, then when the long-run equilibrium is reestablished, the price will be:

1. More than $4.50 per pound.
2. $4.50 per pound.
3. Greater than $3.69 per pound but less than $4.50 per pound.
4. $3.69 per pound.