When the marginal tax rate exceeds the average tax rate, the tax is
a. proportional.
b. regressive.
c. non-egalitarian.
d. progressive.
d
You might also like to view...
In a collusive agreement between two duopolists in an oligopoly, each firm has an incentive to cheat on the agreement because the firm's price
A) exceeds its marginal cost. B) exceeds its marginal revenue. C) is less than its average total cost. D) None of the above answers is correct.
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?
A. $2 B. $8 C. $12 D. $10
Recently a teachers' union argued that the standard of living of teachers working for the school district was falling. The negotiating team for the school board replied that this was not true because the teachers had received significant increases in nominal income through collective bargaining. Could the union statement be correct?
A. No, because real income may rise if price increases are proportionately greater than the increases in nominal income B. Yes, because real income may fall if price increases are proportionately smaller than the increases in nominal income C. Yes, because real income may fall if price increases are proportionately greater than the increases in nominal income D. No, because real income may rise if price increases are proportionately greater than declines in nominal income
For American buyers, there is a decrease in the relative prices of Japanese goods when the ________.
A. inflation rate in Japan is higher than the inflation rate in the United States and there are fixed exchange rates B. inflation rate in the United States is higher than the inflation rate in Japan, and there are flexible exchange rates C. yen appreciates D. dollar appreciates