Under a progressive income tax, the average tax rate
A. decreases as income increases.
B. remains constant at all levels of income.
C. increases as income increases.
D. initially decreases, then increases, as income increases.
C. increases as income increases.
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Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Which of the following statements is true?
a. Brazil has an absolute advantage in producing only coffee. b. Brazil has an absolute advantage in producing only sugar. c. Chile has an absolute advantage in the production of both coffee and sugar. d. Chile has an absolute advantage in producing only coffee. e. Brazil has an absolute advantage in the production of both coffee and sugar.
Which statement is true?
A. All regions of the United States were primarily agricultural in 1865. B. Only the South was primarily agricultural in 1865. C. Only the North and West were primarily agricultural in 1865. D. None of the statements are true.
An income tax is a tax:
A. on income earned by buying investments and selling them at a higher price. B. charged on the earnings of individuals and corporations. C. charged on the value of a good or service being purchased. D. on the wages paid to an employee.
One feature of pure monopoly is that the demand curve:
A. is vertical. B. slopes downward. C. is horizontal. D. slopes upward.