A regressive tax means that if someone earning $25,000 pays $5,000, someone earning $50,000 must pay:
A. Less than $5,000
B. Less than $10,000
C. More than $10,000 but less than $15,000
D. More than $15,000 but less than $20,000
B. Less than $10,000
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Which of the following financial institutions went bankrupt as a result of the financial crisis that began in 2008?
A) Lehman Brothers B) Bank of America C) Citigroup D) JP Morgan
Using a figure show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run
What will be an ideal response?
Show that the following preferences are not consistent for a rational individual
i. An individual when confronted with prices of p1 = $4 and p2 = $8 chooses q1 = 1 and q2 = 5. ii. The same individual facing prices of p1 = $6 and p2 = $9 chooses q1 = 5 and q2 = 3.
Evidence suggests that, in markets with differentiated products but little advertising,
a. consumers are not confused by conflicting signals. b. firms are generally less profitable. c. markets are less efficient. d. consumers make better choices.