Suppose George's income is $10,000 and he pays a tax of $1,000, but Laura's income is $50,000 and she pays a tax of $4,000. Such a tax is:
A. regressive.
B. progressive.
C. proportional.
D. flat.
Answer: A
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Keynesian theory emphasizes
A) aggregate supply. B) rational expectations. C) short-run analysis. D) Say's Law.
people know that the inflation rate will increase from 3 percent to 5 percent. As a result
What will be an ideal response?
Tele-Com, Inc, the nation's largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
a. demand curve for the Disney Channel shifted to the right. b. supply curve of the Disney Channel shifted to the left. c. demand for the Disney Channel is elastic in this price range. d. demand for the Disney Channel is inelastic in this price range.
Whenever Josh goes to his favorite restaurant, he wants to buy tiramisu, his favorite dessert. Despite the fact he would enjoy the flavor of the tiramisu the same amount every time, Josh only buys it when others are having dessert, and never buys it if
he would be the only one having dessert. Behavioral economists would say that Josh's decision is affected by: A. the availability heuristic. B. confirmation biases. C. framing effects. D. the self-serving bias.