Suppose that in the economy of Idaho, Amy earns an income of $50,000 a year and pays $10,000 in income taxes; Bailey earns an income of $25,000 a year and pays $8,000 in income taxes. Based on this information, we could say that Idaho's tax system is
A. progressive.
B. regressive.
C. flat.
D. proportional.
Answer: B
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Allocative efficiency refers to
A) producing the goods and services most highly valued. B) using the least amount of labor to produce output. C) producing the maximum possible amount of output. D) obtaining the least output with the most inputs. E) producing at any point on the PPF.
The certainty equivalent is less than the expected value of a gamble when tastes are risk averse.
Answer the following statement true (T) or false (F)
If planned aggregate expenditure is less than total production
A) the economy is in equilibrium. B) GDP will increase. C) actual inventories will equal planned inventories. D) firms will experience an unplanned increase in inventories.
During recent Global Economic Crises, U.S. household liabilities have
A) increased B) decreased C) remained the same D) quadrupled