Annual incomes of James, Jack, and Stanley are $30,000 . $50,000 . and $80,000 and their tax rates are 10%, 20%, and 30% respectively. Which tax structure is this an example of?
a. Proportional tax
b. Progressive tax
c. Regressive tax
d. Digressive tax
b
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The Law of Supply states that:
A) supply creates its own demand. B) the quantity supplied of a good will always equal the quantity of the good demanded. C) the quantity supplied of a good rises when the price rises. D) at the equilibrium price, there is always some excess supply in the market.
If the Fed buys government securities, other things the same, the exchange rate ________ and U.S. exports ________
A) falls; decrease B) rises; increase C) falls; increase D) rises; decrease E) falls; do not change because they are autonomous expenditure
If the substitution effect is always greater than the income effect, then an individual's labor supply curve will
a. bend backward b. always have a positive slope c. always have a negative slope d. be vertical e. be horizontal
The economy is in long-run equilibrium only when the short run aggregate supply curve intersects the aggregate demand curve along the long run aggregate supply curve
a. True b. False Indicate whether the statement is true or false