A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):
A. proportional tax.
B. equitable tax.
C. progressive tax.
D. unit tax.
Answer: C
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If average labor productivity increases, real GDP per person:
A. increases. B. decreases. C. may increase or decrease depending on the change in the share of population employed. D. remains constant.
Which of the following is consistent with diminishing marginal returns?
a. increasing labor by 10% and output increasing 10%. b. increasing labor by 10% and output prices increase by less than 10%. c. increasing labor by 10% and the marginal product of labor increasing 10%. d. increasing labor by 10% and output increasing by less than 10%.
Refer to Figure 9.1. If the government establishes a price ceiling of $20, total consumer and producer surplus will be
A) $30. B) $400. C) $600. D) $900. E) $1200.
When demand is inelastic, a decrease in price will result in an increase in total revenue.
Answer the following statement true (T) or false (F)