A tax whose impact varies inversely with the income of the person taxed, and poor people have a higher percentage of their income taxed than rich people, is known as a:
a. regressive tax.
b. progressive tax.
c. proportional tax.
d. flat tax.
e. tax holiday.
a
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Which of the following is NOT a potential reason for wage differences by race or sex?
A) discrimination B) differences in human capital C) differences in the degree of specialization D) All of the above are potential reasons for wage differences by race or sex.
As a percentage of GDP, federal expenditures ________ from 1950 to the early 1990s, ________ from 1992 to 2001, and have ________ since 2001
A) rose; rose; fallen B) fell; rose; fallen C) rose; fell; risen D) fell; fell; risen
If the quantity demanded of a public good is greater than the quantity supplied,
a. an excess quantity demanded emerges, which could be eliminated (corrected) by the government decreasing taxes to allow people to buy more of the good b. it is proof that market failure exists c. it is proof that government failure exists d. an excess quantity demanded emerges, which could be eliminated (corrected) by the government increasing taxes to provide more of the good e. the market will create the supply to bring the market for the public good into equilibrium
If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion, imports are $1 billion, and exports are $2 billion, GDP must equal:
A. $17 billion. B. $14 billion. C. $15 billion. D. $16 billion.