A tax whose burden, expressed as a percentage of income, falls as income increases is a
A. regressive tax.
B. benefits-received tax.
C. proportional tax.
D. progressive tax.
Answer: A
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Refer to the information below. What is slope of the demand curve?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month. A) 0.20 B) -0.20 C) -5 D) 5
Which of the following can be thought of as a barrier to entry?
A) scale economies. B) patents. C) strategic actions by incumbent firms. D) all of the above
Assume the nominal dollar-per-euro ($/€) exchange rate appreciates by 2%, U.S. prices rise by 5% and Euro-Area prices rise by 3%. By approximately how much does the real exchange rate change?
a. 2% b. 3% c. 1% d. There is no change. e. 5%
Suppose you buy two tickets to the concert; one for you and one for your girlfriend. Nevertheless, the day of the concert your car brakes down preventing both of you from attending it. Assuming both you and your girlfriend had the same preferences, which of the two of you stand to lose the most from not being able to attend the concert?
A. Both of you stand to lose the same. B. Your girlfriend. C. You. D. None of you would stand to lose anything.