A _________ tax is one where those with higher incomes pay a higher share of taxes out of their income than those with lower incomes.
a. flat
b. progressive
c. proportional
d. regressive
b. progressive
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Chain-weighted price indices are constructed such that
A) all years' levels of GDP are directly related to a base year level of GDP. B) prices of one good can be directly compared with prices of other goods. C) prices in different years can be directly compared with one another. D) prices in different economies can be directly compared with one another.
Inferior goods may also be referred to as
A) countercyclical goods. B) cyclical goods C) substitutes. D) anti-luxury goods.
Suppose that production of a good creates a negative externality. An excise tax equivalent to the difference between the marginal social cost and the marginal private cost of production can correct the inefficiency
a. True b. False
A decline in interest rates tends to expand the economy by
a. encouraging private investment and decrease in bank lending. b. appreciating the currency and lowering the profitability criterion for investments. c. decreasing the cost of capital and reducing net exports. d. depreciating the currency and raising net exports.