A regressive tax is one in which the average tax rate falls as income rises.
Answer the following statement true (T) or false (F)
True
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Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain
What will be an ideal response?
The employment-to-population ratio is
A) 67 percent. B) 64 percent. C) 50 percent. D) 62 percent.
The progressive income tax is an automatic stabilizer with respect to the Federal government's budget surplus or deficit because
A) individuals must "automatically" pay taxes even when they have a deficit. B) during periods of output growth, a greater percentage of real income "leaks" from the expenditure stream. C) during periods of output growth, the marginal leakage rate increases as taxes decrease. D) None of the above.
The value of labor is in skill, effort and knowledge
Indicate whether the statement is true or false