From the net tax function: T = t0 + t1Y, where t0 < 0 and t1 > 0, it follows that, as income rises
a. average taxes falls and the surplus declines.
b. average taxes rises and the deficit increases.
c. average taxes falls and the deficit declines.
d. Average taxes and the deficit do not change.
C
You might also like to view...
A central bank accepts deposits from
A) the federal government and commercial banks. B) commercial banks and private businesses. C) private businesses and individuals. D) individuals, private businesses, commercial banks, and the federal government.
Schumpeter asserts all of the following except
(a) A strong middle class fosters growth in society's entrepreneurial base. (b) Entrepreneurs are the leading force behind technological advancement. (c) Invention and innovation are unnecessary in a growing economy. (d) Secured property rights encourage risk-taking entrepreneurial behaviors.
We assume that in the short run in a perfectly competitive market firms:
A. can enter and exit the market. B. can enter, but not exit the market. C. can exit, but not enter the market. D. cannot enter or exit the market.
Which of the following statements is true about Tyson Foods, Inc?
a. The company has faced synchronized movements in the prices of its inputs in the recent past. b. Tyson has been able to keep its chicken prices more or less stable over the last five years because the prices of its major inputs have not fluctuated too much. c. The company restructured itself to deal with the more complex risks associated with the business today. d. Tyson assigned responsibilities of risk management to employees familiar with the different commodities it handled in order to establish a self-contained unit.