A tax that exacts a higher proportion of income from higher-income people than it does from lower-income households is a regressive tax.
Answer the following statement true (T) or false (F)
False
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Which of the following is NOT a consumption good?
A) a U.S. government bond B) a UPS truck C) Nike swimming trunks D) a Subway sandwich E) marriage counseling services
Two brands of water, Natural Water and Mountain Water, are close substitutes. If the price of Mountain Water decreases, the fall in price
A) shifts the demand curve for Natural Water rightward. B) shifts the demand curve for Natural Water leftward. C) increases the price of Natural Water. D) increases the demand for Mountain Water. E) More information is needed to determine if the demand curve for Natural Water shifts rightward or leftward.
If the government passed a law designating sea shells as money, sea shells
a. would not be legal tender b. would not function as money because they would be unable to serve as a unit of account c. would not function as money because they would be unable to serve as a means of payment d. would not function as money because they would be unable to serve as a store of wealth e. would function as money as long as they were accepted in exchange for goods and services
A well-capitalized financial institution has ________ to lose if it fails and thus is ________ likely to pursue risky activities
A) more; more B) more; less C) less; more D) less; less