In a proportional tax system, ________
A) the average tax rate faced by an individual exceeds the marginal tax rate
B) the marginal tax rate faced by an individual exceeds the average tax rate
C) the average tax rate equals the marginal tax rate
D) the marginal tax rate faced by all households are equal
C
You might also like to view...
Economics is the study of how:
a. humans make decisions in the face of scarcity. b. resources are used to meet human needs. c. humans make decisions when there is an abundance of goods. d. human needs translate to business transactions.
If TruLite's factory workers receive an hourly wage, described by the equation; Employee compensation = $5.00 + 0.10Q, where Q is the number of light switches installed per hour, then:
A. effort is unimportant in the performance evaluation system of the firm. B. $5.00 is the basic incentive to produce. C. Q is entirely dependent on random elements in the production system. D. $0.10 is the incentive to increase effort.
Explain fiscal dominance
What will be an ideal response?
The scandals involving Enron, World Com, Global Crossing and other large firms:
A. have resulted in a cry for less government regulation of public corporations. B. demonstrate that the government should be responsible for collecting and distributing financial information on firms. C. is what should have been expected on the part of investors, that is why there is a risk premium. D. are examples of asymmetric information and have led, at least temporarily, to a less well functioning stock market.