Suppose that if your income is $100,000, your tax is $20,000, but if your income is $200,000, your tax is $45,000. Such a tax is
A. Regressive.
B. A flat tax.
C. Progressive.
D. Proportional.
Answer: C
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Indicate whether the statement is true or false
A bond is a financial security that represents a promise to repay
A) a yearly interest payment and a principal payment. B) a yearly principal payment only. C) a yearly interest payment only. D) Bonds are investments that do not promise any kind of repayment.
In a capitalist market economy, the decision to save is made by the same people who make the major investment decisions
a. True b. False Indicate whether the statement is true or false
The purpose of the ceteris paribus assumption is to allow economists to
A) determine the relationship among several variables. B) determine the impact of several variables on another variable. C) isolate the impact of one variable on several variables. D) isolate the relationship between two variables.