Suppose you are making $100,000 per year and paying $10,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $11,000 per year. Based on this information, the income tax system is
A. progressive.
B. bracketed.
C. proportional.
D. regressive.
Answer: C
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An example of a consumption tax is
A) an income tax. B) transfer payments. C) the Social Security tax. D) a sales tax.
Which of the following could explain a leftward shift of the labor demand curve?
a. Firms are unable to sell all the output they produce. b. Workers have become less productive. c. Workers have become more productive. d. Both (a) and (b) are correct. e. The demand curve for the product that firms sell shifts to the right.
The GDP price index measures changes in the ________.
A. cost of resources employed in the nation B. amount of resources available in the nation C. prices of the output produced in the nation D. value of final output produced in the nation
Suppose that the elasticity of demand for a product is 0.5 and quantity demanded increases by 20%. What must the percentage decrease in price have been?
A. 0.5% B. 5% C. 10% D. 40%