A family that earns $20,000 a year pays $1,000 a year in payroll taxes. A family that earns $40,000 a year pays $2,000 a year in payroll taxes. The payroll tax is
A. a progressive tax.
B. a regressive tax.
C. a proportional tax.
D. a benefits-received tax.
Answer: C
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Which of the following macroeconomic variables would you include in an index of leading economic indicators?
A) Employment B) Inflation C) Real interest rates D) Residential investment
Fiscal policy refers to a government's choices over its
A) expenditures, taxes, transfers, and borrowing. B) expenditures, taxes, issuance of money, and borrowing. C) expenditures, foreign affairs, issuance of money, and borrowing. D) issuance of money, taxes, environmental regulations, and foreign affairs.
Average revenue is equal to
A. TR/Q. B. (P × Q)/P. C. TR × Q. D. All of the responses are correct.
If, at the current exchange rate between the dollar and the South African rand of 6.92 rand per dollar, the rand is "undervalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The supply of the dollar will rise, while the demand for the rand will fall. B) The supply of the dollar will rise, while the demand for the rand will rise. C) The demand for the dollar will rise, while the supply of the rand will fall. D) The demand for the dollar will fall, while the supply of the rand will rise.