Because the marginal tax rate rises as income rises,
a. higher income families, in general, pay a larger percentage of their income in taxes.
b. lower income families, in general, pay a larger percentage of their income in taxes.
c. a disproportionately large share of the tax burden falls upon the poor.
d. higher income families pay the same percentage of their income in taxes as lower-income families.
a
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Which situation is most likely to exhibit diminishing marginal returns to labor?
A) a factory that obtains a new machine for every new worker hired B) a factory that hires more workers and never increases the amount of machinery C) a factory that increases the amount of machinery and holds the number of worker constant D) None of these situations will result in diminishing marginal returns to labor.
Which one of the following was designed to create greater equality in debt holdings?
a. savings bonds b. 30-year Treasury securities c. 3-month Treasury bills d. 2-year Treasury note e. sales taxes
Macroeconomics would be concerned with
A) implications of changes in unemployment and inflation. B) the effects on individual consumers of changes in the price of gasoline for a business. C) the effects of a tax on beer. D) the effects of wage increases on steel manufacturers.
Assuming an upward-sloping aggregate supply curve, when aggregate demand decreases, unemployment
A. Increases, and the price level decreases. B. Increases, and the price level increases. C. Decreases, and the price level decreases. D. Decreases, and the price level increases.