A city government imposes a proportional income tax on all people who earn income within its city limits. In? 2004, the? city's income tax rate was 0.04 ?(4 ?percent), and it collected ?$20.00 million in income taxes. In? 2005, it raised the income tax rate to 0.05 ?(5 ?percent), and its income tax collections declined to ?$19.20 million. What happened to the? city's income tax base between 2004 and? 2005? What would cause a fall in the tax? base?
A.It cannot be determined since the tax rate changed.
B. It rose by ?$116 million.
C. It fell by $0.800.80 million.
D. It fell by $116 million.
A. Incomes of city residents fell.
B.The number of residents earning income fell.
C.Either of the above.
1. (D) It fell by $116 million
2. (C) Either of the above.
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The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2009. What is nominal GDP in 2009?
A) $410 B) $450 C) $900 D) $550 E) $460
On the graph above, if output is falling, while the quantity demanded is rising, the economy may be at a point on ________
A) the aggregate supply curve above the aggregate demand curve B) the aggregate supply curve below the aggregate demand curve C) the aggregate demand curve above the aggregate supply curve D) the aggregate demand curve below the aggregate supply curve E) none of the above
If production of a good creates negative externalities, then the market
a. will under produce it b. will over produce it c. must be perfectly competitive d. must be constrained by barriers to entry e. will produce the most efficient quantity
If the current account balance of a country is positive, the country's international investment position
A) is positive. B) is zero. C) is negative. D) could be positive, negative, or zero.