With a proportional tax, higher-income persons will pay:
A. The same amount of taxes as lower-income persons
B. A bigger amount in taxes compared to lower-income persons
C. A higher proportion of their income in taxes than lower-income persons
D. A higher marginal tax rate as their incomes rise
B. A bigger amount in taxes compared to lower-income persons
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Are sellers who practice arbitrage taking advantage of buyers?
What will be an ideal response?
The barter system requires the double coincidence of wants to be fulfilled
Indicate whether the statement is true or false
Appendix: The Identification Problem in the development of a demand function is a result of:
a. the variance of the demand elasticity b. the consistency of quantity demanded at any given point c. the negative slope of the demand function d. the simultaneous relationship between the demand and supply functions e. none of the above
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the total economic surplus from this transaction was:
A. $215 B. $195 C. $185 D. $30