The progressive income tax is a money transfer system—from the taxpayer to government—and it is in the nature of this system that during recessions, less is taken from people than is taken in periods of prosperity. It is in this sense that the progressive income tax system is regarded by economists as
a. an unfair intervention in people's lives
b. a countercyclical discretionary force
c. a system that is unrelated to government spending
d. an automatic stabilizer
e. volatile and capricious
D
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The costs imposed by inflation should be lessened in the future because of the following reform that took place during the early 1980s
A) airline deregulation. B) issuance of indexed government bonds. C) changing tax laws to ensure that savers are taxed only on real, rather than nominal capital gains. D) lifting of limits on interest paid on checking and savings accounts.
Each of the following is a basic economic role of the government except
A. tax collection. B. spending money. C. regulation of the economy. D. owning most of the means of production.
“Supply creates its own demand” is an expression of
a. the quantity theory of money. b. monetarism. c. Say’s Law. d. the Keynesian critique of classical economics.
?19742015Minimum wage per hour$ 2.00$ 7.25Weekly income from minimum wage$80.00$290.00Cost of a standard basket of goods$47.00$236Number of baskets per week1.701.23
Use Table 2.5 above to answer the question. Comparing the minimum wages between 1974 and 2015 addresses the economic concept of:
A. the marginal principle. B. the principle of voluntary exchange. C. the principle of diminishing returns. D. the real-nominal principle.