Which of the following statements is correct?
a. A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers.
b. A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers.
c. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers.
d. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.
a
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John has an economics test tomorrow. He must study and has planned the rest of his day so that he can fit some study time in. He has decided to go to the gym and then study for several hours. Which of the following statements is TRUE?
A) John did not use the economic way of thinking because his decision on how to allocate his time did not involve money. B) John's decision on how to allocate his time is inconsistent with the rationality assumption since he has decided to go to the gym. C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off. D) John's decision does not involve his pursuit of self-interest.
Which of the following arguments are frequently used to justify laissez-faire policy?
a. b, c, and e b. Many concentrated markets are contestable. c. There is competition, even in the most concentrated markets. d. Monopolies are inevitable. e. Economic blocs keep prices down.
Two policies to combat discrimination are affirmative action and right-to-work laws.
Answer the following statement true (T) or false (F)