Refer to the scenario above. If the income tax rate for the fourth household is higher than the income tax rate for the second household, it can be inferred that the government follows a ________ income tax system
A) progressive
B) regressive
C) proportional
D) value-added
A
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A doctor sets up a private practice in small town where he faces no other competitors. In spite of his monopoly position why is he not guaranteed to make a profit?
What will be an ideal response?
If the supply of lower-skilled workers exceeds the demand, then average wages in the lower quintiles of the income distribution will:
a. increase. b. decrease. c. require government supplementation. d. equalize.
Which of the following would most likely cause a nation's currency to depreciate?
a. an increase in domestic real interest rates b. an increase in exports coupled with a decline in imports c. an increase in the nation's inflation rate d. a balance of trade surplus
How are aggregate supply and stagflation related?
A. Stagflation usually causes an adverse shift in aggregate supply. B. An adverse supply shift usually causes stagflation. C. Stagflation only follows inflation, with no relation to aggregate supply. D. There is no relationship between the two.