A progressive income tax is one that
A) taxes income so that the average tax rate decreases with the level of income.
B) taxes all income above the guaranteed minimum at an average rate that decreases with income.
C) taxes income so that the average tax rate increases with the level of income.
D) taxes income at a constant rate, regardless of the level of income.
C
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A decrease in the price of pizza will lead to a(n):
A. decrease in the quantity of pizza demanded. B. decrease in the number of consumers. C. increase in the quantity of pizza demanded. D. increase in the demand for pizza.
The vertical portion of the AS curve
A. is a short-run phenomenon. B. shows national output rising with the price level. C. does not shift over time, due to economic growth. D. represents the maximum output level.
The contribution to output growth of technological progress is estimated by how much of the output growth can be explained by the growth in inputs.
Answer the following statement true (T) or false (F)
As consumers have a longer time period to respond, the demand for a product typically becomes more inelastic
a. True b. False