When the government levies a tax that is the same fixed percentage of people's incomes, this tax is known as a(n)
a. regressive tax
b. progressive tax
c. proportional tax
d. excise tax
e. a unit tax
C
You might also like to view...
When Ramona is in consumer equilibrium
A) her total utilities of all goods are equal. B) she is maximizing her utility, given her income and the prices of goods and services. C) her total utility per dollar spent is equal for all goods. D) any change in prices would make her worse off.
Why do price ceilings tend to cause persistent imbalances in the market?
A. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. B. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. C. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. D. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
Butter and margarine can function as complements for each other.
a. true b. false
In a closed economy, what is the relationship between saving and investment?
A) Saving is greater than investment. B) Investment is greater than saving. C) Investment is equal to saving. D) Investment may be greater or smaller than saving.