Answer the following statement true (T) or false (F)
1) About two-thirds of all federal spending is for national defense.
2) A progressive tax takes relatively more from the rich than it does from the poor.
3) The benefits-received principle of taxation is used to support corporate and personal income taxes.
4) Sales taxes are proportional in relation to income because the same tax rate applies regardless of the size of a purchase.
Answer:
1. False.
2. True.
3. False.
4. False.
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Refer to the above figure. Which arrows represent items that are not measured in dollar terms?
A) Arrows A and B B) Arrows C and D C) Arrows A and D D) Arrows B and C
Which of the following causes the aggregate production function to shift up?
A) An increase in capital stock B) A decrease in the productivity of workers C) An improvement in technology D) An increase in the total efficiency units of labor
Agraria specializes in the production of cotton. However, cotton manufacturers in Agraria are expecting the demand for its exports to fall sharply due to growing competition from a neighboring country
Assuming all else equal, which of the following is likely to happen in this case? A) The equilibrium unemployment in Agraria will fall. B) The equilibrium real wage in Agraria will rise. C) Investment expenditure in Agraria will rise. D) Consumption expenditure in Agraria will fall.
Gasoline prices increase by 50 percent and other things remain the same. As a result, there is
A) an increase in the demand for gasoline. B) a decrease in the demand for gasoline. C) no change in the quantity of gasoline demanded. D) a decrease in the quantity of gasoline demanded. E) More information is needed to determine if the demand for gasoline increases or decreases.