A tax where the percentage of income paid in taxes is the same regardless of the size of the income is a:
A. proportional tax.
B. regressive tax.
C. progressive tax.
D. sales tax.
Answer: A
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Contracts are enforced by
a. the firms that make the contracts through buy-out clauses b. law firms that specialize in contract enforcement c. corporations specializing in contract writing and enforcement d. the government through the judicial system e. both households and firms through customer relations departments
According to the marginal approach to profit maximization, firms should increase output as long as total revenue is rising
a. True b. False
The term discouraged worker refers to an individual who: a. prefers full-time employment but works only part time
b. has given up looking for a job because he has lost the hope of getting a new job. c. is jobless because of the seasonal nature of his job. d. is jobless because of a recession in the economy.
If a public service commission requires a natural monopoly to set its price equal to the long-run marginal cost, this will result in
A) excessive economic profits to the monopoly. B) normal economic profits to the monopoly. C) losses to the monopoly. D) either economic profits or losses, depending on the efficiency of the monopoly.