Which of the following taxes causes the greatest shift of the Lorenz curve toward the line of equality?
A) proportional income tax
B) regressive income tax
C) flat-rate income tax
D) progressive income tax
D
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When a bank receives $100,000 in new deposits, the amount of loans the bank can make is limited by
A) the Treasury Department. B) federal law. C) its desired reserve ratio. D) the annual federal budget. E) state law, with banks in different states being able to make different amounts of loans.
When an economy's resources are not fully employed, then it must be true that the:
a. production point is located outside and to the right of the production possibilities curve. b. production point is located along the production possibilities curve. c. production point is located inside and to the left of the production possibilities curve. d. production possibilities curve shifts to the right. e. production possibilities curve shifts to the left.
If the income elasticity of demand is negative, this means that the good is
a. an inferior good b. sold at a lower than equilibrium price c. provided by a monopoly producer d. provided by competitive producers e. a normal good
A trade barrier whereby foreign firms agree to limit the quantity of exports to a particular country is called a:
A) quota. B) tariff. C) nontariff barrier. D) voluntary export restriction.