If you pay $2,000 in taxes on an income of $20,000, and a tax of $3,000 on an income of $30,000, then over this range of income the tax is
A) regressive.
B) proportional.
C) progressive.
D) There is insufficient information to answer the question.
B
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The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals
A) 25 percent. B) 60 percent. C) 75 percent. D) an undetermined amount given the lack of information.
Hans can do 4 loads of laundry per hour, and he can type 6 pages per hour. Maria can do 12 loads of laundry per hour, and she can type 8 pages per hour. Hans’s opportunity cost of typing one page is:
A. 4 pages.
B. 6 pages.
C. 2/3 of a page.
D. 3/2 of a page.
E. impossible to compute without additional information.
Net social benefits are maximized when:
A) marginal benefits equal marginal costs. B) marginal benefits are greater than marginal costs. C) marginal benefits are less than marginal costs. D) total benefits are equal to total costs. E) average benefits are marginal benefits are equal.
In which of the following cases are disputes more likely to be settled by negotiations than by court cases?
a. When the parties involved are risk averse b. When time is not an important factor c. When court costs are low d. When parties have asymmetric beliefs about facts