According to the text, the highest 20 percent of U.S. income households earn about what percentage of total income today?

A tradeoff is illustrated by

A) a point inside the PPF. B) a point outside the PPF. C) a change in the slope of the PPF. D) the negative slope of the PPF.

Flat taxes are more equitable than graduated tax schedules.

A. True B. False C. Uncertain

From Example 7.2, most pizza restaurants have large fixed costs and relatively low variable costs. What does this tell us about the average variable cost (AVC) of producing pizza?

A) AVC is relatively low B) AVC is relatively high C) AVC is high for low quantities but declines quickly D) AVC is increasing for all quantity levels

Maude is complaining about how much she pays in taxes now that the economy is finally doing really well. Even though she's in the same tax bracket as she was last year, she's paying $500 more in taxes this year, just because she earned more overtime pay this year. Maude's increased tax payment to the government is an example of:

A. automatic stabilizers. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.