Under a progressive income tax system, the marginal income tax rate paid by taxpayers
A. rises as their incomes increase.
B. is unrelated to their incomes.
C. is unchanged as their incomes increase.
D. declines as their incomes increase.
Answer: A
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Refer to Figure 13.2. Oliver's political views place him at the L4 position and George's political views place him at the C4 position. Based on the two candidates' political views, Sam Butcher decides to enter the race as a third-party candidate
Oliver refuses to change his political views and so remains at the L4 position. Sam espouses political views that place him at the C2 position. Not wanting to lose any conservative votes to Sam, George decides to alter his political views so he, too, ends up at the C2 position. In this situation, who is indifferent about all three of the candidates? A) Alice B) Jan C) Cindy D) Peter
According to the survivor principle
A) firms will get taken over by their larger rivals over time. B) only firms that maximize profits survive in highly competitive markets. C) managers only work hard if they are threatened with their survival at the firm. D) eventually all firms merge to become one large monopoly.
An increase in the price of steel to producers of refrigerators will cause
A) the quantity demanded for steel to increase. B) the demand for refrigerators to decrease. C) the quantity supplied of refrigerators to increase. D) the supply curve for refrigerators to shift left.
Which is not true regarding a delayed-compensation contract?
A. It discourages workers from shirking. B. An effective one requires a mandatory retirement age. C. It necessarily costs more in labor costs than a time rate system. D. It is associated with an upward-sloping age-earnings profile. E. It decreases employee turnover within the firm.