A tax is regressive if it takes a
A. Smaller fraction of dollars as income falls.
B. Larger number of dollars as income falls.
C. Smaller fraction of dollars as income rises.
D. Larger number of dollars as income rises.
Answer: C
You might also like to view...
An example of a quantity restriction is
A) the minimum wage. B) an import quota. C) rent controls. D) price supports in agriculture.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Other things the same, the aggregate quantity of output supplied will decrease if the price level
a. is lower than expected so that firms believe the relative price of their output has increased. b. is lower than expected so that firms believe the relative price of their output has decreased. c. is higher than expected so that firms believe the relative price of their output has increased. d. is higher than expected so that firms believe the relative price of their output has decreased.
Automatic stabilizers
A. are a form of nondiscretionary fiscal policy. B. include income taxes and cash assistance to the poor. C. include in-kind assistance. D. All of the choices are true of automatic stabilizers.