A tax is regressive if it collects a:
A. larger amount as income rises.
B. constant amount as income rises.
C. smaller fraction of income as income falls.
D. smaller fraction of income as income rises.
Answer: D
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The table above gives the purchases of an average consumer in a small economy. (These consumers purchase only loaves of bread and jugs of soda.) Suppose 2010 is the reference base period
a. What quantities are in the CPI market basket? b. What is the cost of the CPI market basket using 2010 prices? c. What is the cost of the CPI market basket using 2011 prices? d. What is the CPI in 2011?
Options traded on exchanges are known as:
A) listed options B) exchange traded options C) call options D) put options
The marginal revenue product of land curve indicates
a. the additional output generated by an additional unit of land, other things constant b. the additional cost to the firm when it employs an additional unit of land, other things constant c. the additional profit the firm earns when it employs an additional unit of land, other things constant d. the additional revenue the firm earns when it employs an additional unit of land, other things constant e. the amount of land required to produce an additional unit of output, other things constant
To be valid, an economic model must:
a. include every activity which occurs in the real world. b. include at least 85 percent of the activity which occurs in the real world. c. be able to predict events occurring in the real world. d. exclude any link to the real world. e. not be based on an abstraction of the real world.