If a tax takes a smaller fraction of income as income rises, it is
a. proportional.
b. regressive.
c. progressive.
d. based on the ability-to-pay principle.
b
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Refer to Figure 15-17. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor?
A) $0 B) $40 C) $88 D) $150
All else equal, when people become more optimistic about a company's future, the
a. supply of the stock and the price will both rise. b. supply of the stock and the price will both fall. c. demand for the stock and the price will both rise. d. demand for the stock and the price will both fall.
Using the liquidity-preference model, when the Federal Reserve increases the money supply, a. the equilibrium interest rate decreases
b. the aggregate-demand curve shifts to the left. c. the quantity of goods and services demanded is unchanged for a given price level. d. the short-run aggregate-supply curve shifts to the right.
In modern culture, which of the following has probably become the most precious resource?
a. water b. time c. oil d. mathematics