Consider a world with three income earners. Individual A earns $20,000 and pays $1,000 in taxes. Individual B earns $50,000 and pays $5,000 in taxes. Individual C earns $100,000 and pays $2,000 in taxes
Which of the following best classifies the income tax system in this world? a. proportional b. progressive c. regressive
d. none of the above
d
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The table above gives data for the nation of Mosh. The MPC of the economy is
A) .75. B) 1. C) .90. D) .80. E) indeterminate with the information provided.
An underground economy:
a. is a market where transaction occurs under the ground. b. is a market where the buyers and sellers make transactions without the government’s approval. c. is a market where the buyers and sellers make transactions with the government’s approval. d. is a market that is international in scope and fully authorized to conduct business.
Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is
a. counted as part of the labor force and is unemployed b. considered frictionally unemployed c. an underemployed worker d. not counted as part of the labor force e. considered productively active even though he isn't working
Suppose that twenty-five years ago a country had nominal GDP of $1,000, a GDP deflator of 200, and a population of 100 . Today it has nominal GDP of $3,000, a GDP deflator of 400, and population of 150 . What happened to the real GDP per person?
a. It more than doubled. b. It increased, but it less than doubled. c. It was unchanged. d. It decreased.