The four main forms of income that economists have identified include all of the following except
a. wages
b. wealth
c. rent
d. profit
e. interest
B
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An income tax system in which the average tax rate decreases with the level of income is called a
A) progressive income tax system. B) proportional income tax system. C) regressive income tax system. D) flat-rate income tax system.
From an economic point of view, _____ makes a lot of sense because it takes advantage of the gains produced by specialization
a. bicameral legislatures b. representative democracy c. proportionality in the House of Representatives d. bureaucracy
Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which scenario best sets the stage for economic growth?
A) The unemployment rate in Indiana rises from 5% to 6%. B) The Midwest has a devastating drought. C) The percentage of Indiana residents with a college degree rises from 25% to 30%. D) The United States imports more and more low-cost steel from Asian countries.
Suppose lower expectations lead to a decrease of $240 in desired investment in the economy and the marginal propensity to consume is 0.75.Table 10.2Spending CyclesChange in this Cycle's Spending and IncomeCumulative Decrease in Spending and IncomeFirst-cycle spending-$240-$240Second-cycle spending________________Third-cycle spending________________In Table 10.2, what will be the total decrease in aggregate demand resulting from the initial $240 decrease in investment expenditure after an infinite number of cycles?
A. -$240.00. B. -$960.00. C. -$135.00. D. -$555.00.