Explain the difference between a progressive income tax, a proportional income tax and a regressive income tax. Under which type of system is the federal income tax?
A progressive tax is an income tax system in which the taxpayer pays a higher tax rate as her taxable income rises (up to some maximum rate), as with the current federal income tax system. A proportional income tax (sometimes called a flat tax) is one in which the taxpayer pays a constant tax rate as her taxable income rises or falls. A regressive income tax is an income tax system in which the taxpayer pays a lower tax rate as her taxable income rises.
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What types of things are sold in input or factor markets? Who are the buyers and sellers in these markets?
What will be an ideal response?
Lindahl prices for collective consumption goods are _____
a. are sufficient to achieve political agreement on the optimal level of output b. are necessary to achieve political agreement on the optimal level of output c. are sufficient for economic efficiency d. are necessary for economic efficiency
A rightward shift in the aggregate demand curve can be caused by an increase in:
A. the price level. B. business investment spending. C. taxes. D. production costs.
The extra amount of output a business can generate by adding one more hour of labor is called
A. marginal cost. B. labor input. C. marginal product. D. marginal revenue.