Under a regressive tax system, the marginal tax rate for high income taxpayers is
a. higher than the marginal tax rate for low income taxpayers.
b. the same as the marginal tax rate for low income taxpayers.
c. lower than the marginal tax rate for low income taxpayers.
d. Any of the above could be true under a regressive tax system.
c
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Adam Smith's diamond-water puzzle
a. can be resolved by distinguishing between marginal and total utility. b. occurs because diamonds have no utility. c. occurs because scarcity increases total utility. d. will likely never be resolved with existing economic tools.
The MPC + MPS must always equal
A. The APC. B. 0. C. 1. D. The slope of the consumption function.
Money market mutual funds sell shares to investors and use the money to buy
A) mortgage-backed securities. B) foreign currency. C) short-term securities. D) overseas assets through foreign direct investment.
Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. The total utility of five hamburgers per day is
A. 76. B. 80. C. 96. D. indeterminate from this information.