Explain what a proportional tax is and provide an example
What will be an ideal response?
A proportional tax is a tax whose burden is the same proportion of income for all households. A tax of 20 percent on all forms of income, with no deductions or exclusions is an example of a proportional tax.
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When we measure and record economic value, we use money as the
a. liquid asset. b. medium of exchange. c. unit of account. d. store of value.
Which question is an illustration of a microeconomic question?
a. Is the quantity of wine purchased in one year dependent upon the price of wine? b. Is the purchasing power of the dollar higher or lower today than it was in 2000? c. Does government spending influence the total level of employment in the economy? d. Is capitalism superior to socialism?
A firm's long-run position under perfect competition is often said to be efficient because
A) P = AR > MC = AVC. B) P = AR > MR = MC. C) P = MR = AVC = AFC. D) P = MR = MC = ATC.
Compared to the level of real GDP per person in 1870, by 2010, real GDP in the U.S was ________ times larger, while real GDP per person in Japan was ________.
A. 12; 30 times larger B. 12; smaller C. 30; 12 times larger D. 12; 12 times larger