If Joe earns $80,000 per year and pays $20,000 in taxes, while Moe earns $100,000 and pays $22,000 in taxes, their tax system would best be described as:
a. progressive.
b. proportional.
c. regressive.
d. discretionary.
e. lump-sum.
a
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If a firm accumulates unwanted inventories, then it
A) must hire more workers. B) will increase its production. C) has actual investment equal to its planned investment. D) will decrease its production. E) has actual investment that is less than its planned investment.
A small open economy has a current account balance of zero. A rise in the world real interest rate causes
A) a current account surplus. B) a financial account surplus. C) net borrowing from abroad. D) absorption to exceed income.
Since classical economists believe that both V and Q are constants for an economy in short-run equilibrium, the equation of exchange becomes a theory in which:
a. the quantity of money explains prices. b. the quantity of money explains velocity. c. the quantity of money explains real GDP. d. changes in M cause changes in V. e. prices are never flexible
If the amount of lemonade purchased and the outdoor temperature are directly related, then
A. when temperature rises, the amount of lemonade purchased rises. B. a graph with this relationship would be negatively sloped. C. sellers of lemonade hope for cooler temperatures. D. the slope of the line reflecting this relationship will be 0.