Suppose you are making $100,000 per year and paying $10,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $15,000 per year. Based on this information, the income tax system is
A. progressive.
B. regressive.
C. bracketed.
D. proportional.
Answer: A
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In the above figure, if the quantity is equal to 500,000 units, the deadweight loss is equal to
A) area C. B) area D + area I. C) area B + area F. D) area G + area H. E) None of the above answers is correct because the deadweight loss is equal to zero.
As more bananas are consumed, other things constant, marginal utility tends to decrease at:
a. the same rate for all people. b. the same rate for all goods for a given person. c. the same rate for all people. d. different rates for different people and for other goods. e. different rates for different people, but at the same rate as other goods.
When a person buys a bond of the XYZ Corporation, he or she can expect to
A) pay the corporation a certain amount of money each quarter of the year. B) receive the face value of the bond each year and the face value of the bond when the bond matures. C) receive the coupon rate times the face value of the bond each year and the face value of the bond when the bond matures. D) receive the face value of the bond each year in perpetuity.
A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in:
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. a higher labor force participation rate.