A regressive tax is a tax for which people with lower incomes
A) pay the same percentage of their incomes in tax as do people with higher incomes.
B) do not have to pay unless their incomes exceeds a certain amount.
C) pay a lower percentage of their incomes in tax than do people with higher incomes.
D) pay a higher percentage of their incomes in tax than do people with higher incomes.
D
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The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these cookies is 1.9. If a tax is imposed on purchases of chocolate chip cookies, then the
A) consumers would pay more of the tax. B) producers would pay more of the tax. C) tax would be equally shared by the consumers and the producers. D) consumers would pay the entire tax because their demand is less elastic than the producers' supply.
When a positive externality is present in a market, the quantity consumed:
A. is always more than the socially optimal quantity. B. is the same as the socially optimal quantity. C. is often more than the socially optimal quantity. D. is less than the socially optimal quantity.
If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 130, real GDP a. rises
b. falls. c. stays the same. d. could either be rising or falling.
A movement down and to the left along the aggregate supply curve will occur when
a. firms' average markup is stable and a decrease in real GDP causes unit costs to fall b. world oil prices fall, thus decreasing the price level c. a change in fiscal policy causes aggregate expenditure to increase d. firms decide to produce less than before at each price level e. an increase in real GDP causes the price level to fall