Answer the following statement(s) true (T) or false (F)
1. The federal income tax is a regressive tax.
2. Regressive taxes take a higher percentage of income from lower-wage earners than from higher-wage earners.
3. Employers shift all the FICA tax burden to employees by paying lower wages.
4. The majority of taxes are efficient.
5. Vertical equity means people of all incomes should pay equal tax percentages.
1. False
2. True
3. True
4. True
5. False
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With total fixed cost of $400, a firm incurs an average total cost of $3 and average variable cost of $2.50. The amount of output produced by the firm must be
A. 800 units. B. 1,600 units. C. 400 units. D. 200 units.
Suppose a basket of goods and services has been selected to calculate the CPI. In 2002, the basket's cost was $80; in 2008, the basket's cost was $92; and in 2010, the basket's cost was $108 . The base year must be
a. 2002. b. 2008. c. one of the years between 2008 and 2010. d. The base year cannot be determined from the given information.
When economists say the quantity demanded of a product has increased, they mean the:
A. demand curve has shifted to the left. B. demand curve has shifted to the right. C. price of the product has fallen, and consequently, consumers are buying more of it. D. price of the product has risen, and consequently, consumers are buying less of it.
Human capital is a combination of inborn and acquired skills, talent, and knowledge.
Answer the following statement true (T) or false (F)