Which of the following statements is not correct regarding taxes?
A. The largest source of state and local governments tax revenue is sales and excise taxes.
B. The largest source of federal government tax revenue is individual income taxes.
C. A sales tax on food is a regressive tax.
D. A proportional tax is equal to a fixed dollar amount.
Answer: D
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The demand curve for a perfectly competitive firm is ________, while the demand curve for a monopolist is ________.
A. perfectly inelastic; perfectly elastic B. perfectly elastic; downward-sloping C. vertical; downward-sloping D. perfectly elastic; perfectly inelastic
Which of the following is a possible consequence if a contractionary monetary policy is adopted?
A) The demand for labor will increase. B) The aggregate price level will rise. C) Real output will increase if nominal wages are fixed. D) Real wages will increase if nominal wages are fixed.
When the Census Bureau counts the number of poor Americans, it counts
A. Only money income. B. Personal income plus transfer payments. C. Only in-kind income. D. Both in-kind and money income.
Upward mobility for those in poverty is
A. Not likely to happen at all because most people live in a caste system. B. More likely for people in rich nations than in poor nations. C. Equally likely for people in rich nations and poor nations. D. More likely for people in poor nations than in rich nations.