Jose earns $150,000 per year and Josephina earns $80,000 per year. If Jose pays $15,000 in income taxes and Josephina pays $5,000 in income taxes, the income tax system would be
A. progressive.
B. regressive.
C. proportional.
D. marginal.
Answer: A
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In the above figure, the firm is breaking even at points
A) a and c. B) b and d. C) c and d. D) a and d.
If the employment-population ratio in 2015 was at the same level as it was in 2006,
A) the same number of people would have been working in 2015 as were working in 2006. B) the number of employed people in 2015 would not have been different. C) an additional 8 million people would have been working in 2015 than actually were. D) 3.5 million fewer people would have been working in 2015 than actually were.
Commitment devices are necessary when:
A. players cannot trust that other players will avoid playing a dominated strategy. B. following through on a threat or promise is not in a player's best interest. C. people cannot correctly identify their dominant strategy. D. commitments cannot be purchased.
From 2004 to 2006 the Fed raised the federal funds rate gradually in a series of steps. The Fed's purpose was to raise the prime interest rate so that:
A. high inflation rates would fall. B. aggregate demand would continue to grow consistently and with low inflation. C. aggregate supply would grow, increasing output and lowering the price level. D. banks would reduce lending that was building up unmanageable consumer debt.