To prevent people paying a higher percentage of their income in taxes even when their real incomes have not changed, Congress:
A. implemented a flat tax.
B. indexed the income tax brackets to the CPI.
C. reduced the capital gains tax.
D. deflated the income tax brackets to the CPI.
Answer: B
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The above table gives the demand and supply schedules for cat food. If the price is $1
00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?
Matty and Rudy are the same age, live in the same town, and hold similar jobs a similar distance from their respective homes. They are so similar, in fact, that to the insurance company, they look the same and are offered the same insurance options. However, Matty has never been a particularly good driver and so buys a lot of auto insurance. Rudy, on the other hand, takes pride in being an excellent driver and so only carries the minimum insurance required. This example illustrates the potential for :
A. risk pooling. B. risk aversion. C. adverse selection. D. diversification.
A monopolist will always enlarge its revenues by selling more output
a. True. b. False.
An insurance policy is a product that:
A. involves a company paying individuals very large sums of money if they encounter any risk. B. involves individuals paying a regular fee in return for an agreement that the insurance company will cover all expenses associated with risky behavior. C. involves individuals paying a company to ensure they don't experience any risk. D. allows people to pay to reduce uncertainty in some aspect of their lives.