A tax where wealthy people pay a larger percentage of their income than poor people is known as a(n)
a. excise tax
b. flat tax
c. proportional tax
d. progressive tax
e. regressive tax
D
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Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and, at the price level of 100, current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by reducing government purchases by $50, then the expenditures multiplier equals
A. 4. B. 5. C. 2. D. 10.
If the opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany, it makes sense for Japan to produce wristwatches
Indicate whether the statement is true or false
What is the amount that individuals would have been willing to pay, minus the amount that they actually paid?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
"The theory's predictions are consistent with what I believe, so now I have good reason to believe what the theory says." This statement is likely to have been made by a person who believes that
A) theories should be tested by gathering and analyzing data. B) theories are descriptive of reality. C) theories should be falsifiable or refutable. D) b and c E) none of the above