Refer to the information provided in Table 19.5 below to answer the question that follows.
Table 19.5Total IncomeTotal TaxesAverage Tax RateMarginal Tax Rate$10,000$1,500??$20,000$2,400??$30,000$3,000??$40,000$3,200??Refer to Table 19.5. The tax rate structure in this example is
A. progressive.
B. regressive.
C. marginal.
D. proportional.
Answer: B
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The phrase "demand has increased" means that
A) a demand curve has shifted to the right. B) there has been a downward movement along a demand curve. C) a demand curve has shifted to the left. D) there has been an upward movement along a demand curve.
Advocates of flexible exchange rates claim that under flexible exchange rates, the central bank of
A) an overheated economy could cool down activity by increasing the money supply without worrying that undesired reserve inflow would undermine its stabilization effort. B) a cooled economy could cool down activity by contracting the money supply without worrying that undesired reserve inflow would undermine its stabilization effort. C) an overheated economy could cool down activity by contracting the money supply without worrying that undesired reserve inflow would undermine its stabilization effort. D) an overheated economy could cool down activity by contracting the money supply without worrying that undesired reserve outflow would undermine its stabilization effort. E) an overheated economy could cool down activity by decreasing employment and increasing output without worrying that this would undermine its stabilization effort.
A labor union composed of workers in the same occupation is called
A) a craft union. B) an industrial union. C) a company union. D) a closed shop.
When a perfectly competitive, well-functioning market is in equilibrium:
A. consumer surplus is minimized. B. producer surplus is minimized. C. total surplus is maximized. D. total surplus is zero.