If Bob earns $20,000 a year and pays $2,000 in taxes, and Cindy earns $40,000 a year and pays $4,000 in taxes, there is a _______________ tax in place.
A. progressive
B. regressive
C. proportional
D. lump-sum
C. proportional
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The World Bank primarily issues loans in order to
A) promote long-term development and growth in a developing nation. B) ensure long term stability within a banking system. C) be the global lender of the last resort in the case of financial crisis. D) maintain the IMF conditionality rules.
According to Figure 6.1, the period from 1974 to 1995 is particularly remarkable for the slow growth of ________
A) output per worker B) labor input C) output D) capital input
The Gauss-Markov theorem will not hold if _____.
A. the error term has the same variance given any values of the explanatory variables B. the error term has an expected value of zero given any values of the independent variables C. the independent variables have exact linear relationships among them D. the regression model relies on the method of random sampling for collection of data
A monopolistically competitive firm is producing 50 units of output in the short run where marginal cost is $3.00, average total costs are $5.00, price is $4.50, average variable cost is $4.00, and marginal revenue is $3.00. How much profit is the firm
making? What output recommendation would you make for the firm? What will be an ideal response?