When the tax structure of a nation is progressive, as incomes increase, the tax rate:
A. declines.
B. remains the same.
C. increases.
D. is proportional.
Answer: C
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Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase?
A) an increase in the demand for corn B) an increase in the price of soybeans C) a decrease in the price of corn D) an increase in the price of soybean seeds
The U.S. macroeconomic experience of the early to mid-1980s is an example of how
A) reducing inflation comes at the cost of a permanent reduction in real GDP. B) reducing inflation comes at the cost of a temporary reduction in real GDP. C) reducing inflation can be done costless by simply increasing the money growth rate. D) increasing the money growth rate affects inflation alone, and not real GDP.
If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
a. a decrease in the supply of the good. b. a decrease in the demand for the good. c. an increase in the demand for the good. d. an increase in the supply of the good.
Which of the following is not a coincident indicator?
A. personal income minus transfer payments B. industrial production C. manufacturing and trade sales D. average workweek