Payroll taxes (Social Security and Medicare) are:
A. progressive, leading to a more equitable distribution of income.
B. proportional, because all pay the same rate.
C. progressive, like the federal income tax.
D. regressive, because the tax applies to only a fixed amount of income.
Answer: D
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a. True b. False Indicate whether the statement is true or false
Protectionism in international trade saves jobs in the specific industry being protected, but costs jobs in other unprotected industries.
Select whether the statement is true or false. A. True B. False
When consumption and saving are graphed relative to real GDP, an increase in personal taxes will shift:
A. both the consumption and saving schedules downward. B. both the consumption and saving schedules upward. C. the consumption schedule upward and the saving schedule downward. D. the consumption schedule downward and the saving schedule upward.
Additional external costs associated with the production of consumer goods often comes in the form of what?
a. Market failure costs b. Externality costs c. Pollution costs d. Spillover costs