Consider the following data that describe the relationship between income and a tax.IncomeTaxes$20,000$3,40016,0003,00012,0002,4008,0001,6004,000800The tax may be best described as
A. proportional at lower income levels and progressive at higher income levels.
B. proportional at lower income levels and regressive at higher income levels.
C. regressive at lower income levels and proportional at higher income levels.
D. regressive at lower income levels and progressive at higher income levels.
Answer: B
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When money is used to express the value of goods and services, it is functioning as a
A) medium of exchange. B) store of value. C) store of purchasing power. D) unit of account.
John loves to travel. He would never turn down the opportunity to go on a trip. This means that, for John:
a. the total utility of travel always increases. b. marginal utility of travel never decreases. c. the law of diminishing marginal utility does not apply to travel. d. marginal utility of travel is always zero. e. extra travel yields zero consumer surplus.
When tax code changes reduce saving incentives, the interest rate will _____ and investment will _____
Fill in the blank(s) with correct word
An increase in the real interest rate on U.S. bonds, everything else equal, will have the following impact on the foreign exchange market:
A. the supply of dollars will increase. B. the demand for dollars will decrease. C. the dollar will depreciate relative to foreign currencies. D. the demand for dollars will increase.