The burden of a proportional tax ________ as a percentage of income as income ________.
A. rises; falls
B. does not change; rises or falls
C. rises; rises
D. falls; falls
Answer: B
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Debt-for-nature swaps are most generally
(a) beneficial only to the developing country. (b) beneficial only to the developed country. (c) beneficial only to the bank which can write off the debt. (d) beneficial to all countries.
If Mia can either wash 10 cars or wax 2 cars during a day, and Daniel can either wash 17 cars or wax 2 cars during a day, then according to the law of comparative advantage,
a. Daniel's opportunity cost of waxing a car is less than Mia's. b. their total output can be expanded if Mia specializes in waxing and Daniel in washing. c. their total output can be expanded if Mia specializes in washing and Daniel in waxing. d. it would be impossible for Daniel and Mia to increase their total output through specialization and mutual exchange.
Refer to the information provided in Figure 7.5 below to answer the question(s) that follow. 
Figure 7.5Refer to Figure 7.5. Diminishing marginal returns set in after the ________ worker is hired.
A. first B. fifth C. eighth D. sixteenth
The main difference between perfect competition and monopolistic competition is
A. The ease of entry and exit. B. The degree of product differentiation. C. The long-run economic profits that are expected. D. The number of firms in the market.