A tax is progressive if it takes a
A. Smaller fraction of income as income falls.
B. Larger number of dollars as income falls.
C. Smaller fraction of income as income rises.
D. Smaller number of dollars as income rises.
Answer: A
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Increases in the productivity of labor result partly from
A. increases in the quantity of labor. B. improvements in technology. C. the law of diminishing returns. D. reductions in wage rates.
Jenny buys sodas and popcorn. Sodas sell for $1 and popcorn sells for $2 a bag. Currently she is in consumer equilibrium, with the marginal utility from her last dollar spent on popcorn equal to 100 units of utility
The marginal utility from her last dollar spent on sodas is A) 20 units of utility. B) 30 units of utility. C) 50 units of utility. D) 100 units of utility.
Constructing plastic containers produces air pollutants. Therefore, in the market for plastic containers,
A) the marginal social cost curve is above and to the right of the demand curve. B) the marginal social cost curve is below and to the left of the demand curve. C) the marginal social cost curve is above and to the left of the supply curve. D) the marginal social cost curve is below and to the right of the supply curve. E) there is a gap between quantity supplied and quantity demanded in equilibrium.
What does the production possibilities frontier imply about the resource allocation?
A. Only some points on the curve are efficient. B. All points on the curve are equally efficient. C. A point that lies below the curve is more efficient. D. A point that lies above the curve is readily achievable.