In a proportional tax system each individual would pay the same percentage of his or her income in taxes
a. True
b. False
Indicate whether the statement is true or false
True
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Give a specific example that shows clearly how the System of National Accounts endorsed by the United Nations fails to properly capture activity that harms the environment. Now, suggest a way to quantitatively correct the flaw in the particular case that you describe in part (a).
What will be an ideal response?
As wages rise, the substitution effect induces households to
A) choose leisure rather than supplying labor in the labor market. B) choose supplying labor in the labor market rather than engage in leisure. C) reduce the opportunity cost of leisure. D) reduce the economic rent from leisure.
Total product will start to decrease
A. when marginal physical product becomes negative. B. when marginal physical product increases. C. when average physical product decreases. D. at the quantity where the law of diminishing returns starts.
Jack has a ticket to see the Foo Fighters for which he paid $30 yesterday. He takes an unpaid day off from work to get ready for the concert. When he arrives at the concert, five different people offer him $70 for his ticket. Jack decides to keep his ticket. At the time he makes this decision, his opportunity cost of seeing the Foo Fighters is:
A. $70 plus his foregone earnings. B. $70. C. $40. D. $30 plus his foregone earnings.