A progressive income tax means that those with a higher income pay
A. a higher percentage of their income in taxes than low-income people.
B. the same percentage of their income in taxes as low-income people.
C. a lower percentage of their income in taxes than low-income people.
D. all the taxes in the economy.
Answer: A
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Use the following diagrams for the U.S. economy to answer the next question.
If the economy is initially at full employment, which of the diagrams best portrays a recession as a result of an increase in the cost of production?
A. Graph (1) B. Graph (2) C. Graph (3) D. Graph (4)
If the individuals in a group of consumers all have homothetic tastes, then we can treat the group as a single representative consumer.
Answer the following statement true (T) or false (F)
Which of the following is the best example of a perfectly competitive firm?
A) a Taco Bell restaurant B) United Parcel Service (UPS) C) a corn farmer in Illinois D) the Ford Motor Company
Using time-series data, the demand function for a profit-maximizing monopolist has been estimated asQd = 142,000 - 500P + 6M - 400PRwhere Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:MC = 200 - 0.024Q + 0.000006Q2Total fixed cost is forecast to be $500,000 in 2016. What is the value of average variable cost at the optimal level of output?
A. $196 B. $112 C. $96 D. $232 E. $76