An income tax is progressive if the:
A. absolute amount paid as taxes varies directly with income.
B. percentage of income paid as taxes is the same regardless of the size of income.
C. percentage of income paid as taxes increases as income increases.
D. tax rate varies inversely with income.
Answer: C
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A real quantity is a quantity measured:
A. using real prices. B. in terms of current dollar value. C. in physical terms. D. by the average quantity.
Initially the nominal exchange rate between the South Korean won and the U.S. dollar is 950 won per dollar. If the nominal exchange rate increases to 1000 won per dollar and the U.S and Korean price levels do not change, the real exchange rate
A) is the same as before. B) is greater than before. C) is less than before. D) More information is needed to answer the question.
Suppose the supply and demand of land for natural gas extraction are imperfectly elastic. Given that coal is a potential substitute for natural gas in energy applications, a change in the price of coal may shift the demand curve for natural gas
What happens to the economic rents assigned to land on which natural gas is extracted if the price of coal declines? A) Rents increase B) Rents are positive and remain unchanged C) Rents decrease D) Rents are zero before and after the change
Demand-pull inflation is caused by a rightward shift of the aggregate demand curve
a. True b. False Indicate whether the statement is true or false