Under a proportional tax, the fraction of income paid in taxes
a. rises as income rises.
b. is unchanged as income changes.
c. falls as income rises.
d. is proportional to the change in income.
b
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An increase in ________ shifts the production function ________, and makes it possible to produce a higher level of GDP with ________ capital per hour worked
A) technology; down; the same amount of B) consumption; up; a lesser amount C) technology; up; the same amount of D) labor productivity; down; the same amount of
There is currently a resurgence in Keynesian macroeconomics, based on the assumptions of market ________ and ________ expectations
A) non-clearing, adaptive B) non-clearing, rational C) clearing, adaptive D) clearing, rational
Investment spending tends to be
A) anticyclical. B) a periodic variable. C) unrelated to GDP. D) procyclical.
The study of the problems due to asymmetric information was begun when economists analyzed which type of market?
A) the market for automobiles B) farmers' markets C) the market for insurance D) the market for citrus fruit