Under a regressive tax, the fraction of income paid in taxes
A. rises as income rises.
B. is unchanged as income changes.
C. falls as income rises.
D. is proportional to the change in income.
Answer: C
You might also like to view...
Capital flows between countries are smaller than in past decades in absolute terms
Indicate whether the statement is true or false
The Cochrane-Orcutt iterative method is
A) a special case of GLS estimation. B) a method to compute HAC standard errors. C) a special case of maximum likelihood estimation. D) a grid search for the autoregressive parameters on the error process.
Suppose the marginal cost of dating Perry is $30 and the marginal benefit is worth $40 to you. Following economic reasoning, you should:
A. determine what your sunk costs are. B. date Perry. C. not date Perry. D. determine what your total benefits and total costs are.
Which of the following is an assumption used by monetarists in establishing the quantity theory of money?
a) real GDP is equal to the multiplicative product of the money supply and the price level b) the velocity of money is constant c) households exhibit rational expectations d) households exhibit money illusion e) all of the above