Suppose that the income tax in the United States was such that all households had to pay 20 percent of their income to the government as taxes. This tax is an example of
A) a regressive tax.
B) a proportional tax.
C) a progressive tax.
D) an efficient tax.
B
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If the social cost of producing a good or service exceeds the private cost
A) the sum of consumer surplus and producer surplus is maximized. B) a positive externality exists. C) the market achieves economic efficiency. D) a negative externality exists.
Long-run macroeconomic policies concentrate on:
A) minimizing fluctuations around potential GDP. B) maximizing fluctuations around potential GDP. C) incentives for increasing productivity and the potential output of the economy. D) none of the above.
Globalization raises the standard of living of all countries
Indicate whether the statement is true or false
If the interest rates rise, the present values of future dollars will _______.
Fill in the blank(s) with the appropriate word(s).