A ________ income tax means that those with a higher income pay the same percentage of their income in taxes as low-income people.
A. regressive
B. progressive
C. consumption-based
D. proportional
Answer: D
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Which of the following describes a corporate merger?
a. When two firms join to form a new firm b. When one firm buys another firm c. When a firm splits to form two new firms d. When a firm sells part of itself to another firm
The consensus among researchers is that union workers earn 15 percent more than otherwise identical nonunion workers. This means unions have probably raised wages
a. exactly 15 percent. b. less than 15 percent. c. at least 15 percent. d. more or less than 15 percent, but one cannot tell exactly.
The "invisible hand" using Adam Smith's terminology refers to:
a. "behind-the-scenes" policy making to influence how markets allocate scarce resources. b. market forces working through the price mechanism. c. the money supply that serves to keep the economy working smoothly. d. government control of the market. e. the role of innovation in maintaining a steady rate of growth.
Which panel of Figure 3.3 represents the changes in the market for textbooks when the cost of paper decreases and the government increases the number of student loans it grants?
A. A. B. B. C. C. D. D.