When a tax is proportional, the average tax rate:
A. first increases with income, then decreases with income.
B. is constant with income.
C. decreases with income.
D. increases with income.
Answer: B
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Accelerator theory refers to the theory of
A) consumption that emphasizes that current consumer spending depends positively on the expected future growth of GDP. B) investment that emphasizes that current investment spending depends positively on the expected future growth of government spending. C) consumption that emphasizes that increases in consumption spending will result, through the multiplier effect, in greater increases in GDP. D) investment that emphasizes that current investment spending depends positively on the expected future growth of GDP.
Constructing plastic containers produces air pollutants. Therefore, in the market for plastic containers,
A) the marginal social cost curve is above and to the right of the demand curve. B) the marginal social cost curve is below and to the left of the demand curve. C) the marginal social cost curve is above and to the left of the supply curve. D) the marginal social cost curve is below and to the right of the supply curve. E) there is a gap between quantity supplied and quantity demanded in equilibrium.
A professor at a university finds a way to reduce the costs of producing automobile glass. The method is very easy for anyone to copy. A company develops a substance which prevents eyeglasses from smudging. It receives a patent on the formula. Which of these are common technological knowledge?
a. the method to reduce costs of producing automobile glass, and the formula for the substance that prevents smudging b. the method to reduce costs of producing automobile glass, but not the formula for the substance that prevents smudging c. the formula for the substance that prevents smudging, but not the method to reduce costs of producing automobile glass d. neither the method to reduce costs of producing automobile glass nor the formula for the substance that prevents smudging
Studies generally show that if there is more investment in capital goods in DVCs, there will be greater:
A. Capital flight B. Economic growth C. Underemployment D. Unemployment