If all taxpayers pay the same percentage of income in taxes, the tax system is progressive
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
_____________ refers to the health and happiness of the total person, involving body, mind, and spirit and includes measures of life expectancy, health, and education
a. Psychographics b. Well-being c. Positive sociology d. Assimilation
According to the principle of increasing costs, as the production of one good expands, the opportunity cost of producing another unit of the good tends to increase
a. True b. False Indicate whether the statement is true or false
Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent. At the end of the year prices have actually risen by 7 percent
a. Gladys earns extra real income. b. Kay loses extra real income. c. Kay receives extra real income. d. Neither party gains or loses if the loan is repaid.
Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window. Quick Burger Operates aDrive-Through WindowQuick Burger Does NotOperate Drive-Through WindowQuick Burger$24,000$15,000The Sunshine Café$11,000$23,000If Quick Burger has the legal right to operate a drive-through, and Quick Burger and The Sunshine Café can negotiate with each other at no cost, then will Quick Burger operate a drive-through window?
A. Yes, because Quick Burger's payoff is higher when it operates a drive-through. B. No, because it is not socially efficient to operate a drive-through. C. No, because it would lower the payoff for The Sunshine Café. D. It cannot be determined.