Refer to Figure 18-7. The second highest 20 percent of households
A) earn 24 percent of the society's total income. B) earn 28 percent of the society's total income.
C) earn 42 percent of the society's total income. D) earn 72 percent of the society's total income.
A
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Which of the following is an unit excise tax?
A. A tax of 15% B. An admission fee of $2.00 on each ticket purchased C. An ad valorem tax of $3.00 D. An income tax of $3.00
Refer to Figure 24-2. Ceteris paribus, an increase in the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Refer to the above figure. If an individual firm wants to maximize economic profits, it should
A) charge $5 for its product. B) charge more than $5 for its product since increasing the price will increase revenues. C) charge less than $5 for its product since a lower price will attract more customers. D) withdraw its product from the market forcing the market price up.
Pollution taxes are more efficient in cleaning up the environment than direct controls. What is not an advantage of direct controls?
A. They are useful standby mechanisms. B. They are useful if it is decided to prohibit the substance altogether. C. They are useful where dependable metering devices are not available or prohibitively costly to install. D. They are most useful in centrally planned economies.