Which of the following would indicate that a tax is regressive?
a. High-income people pay $5,000 . low-income people pay $2,000.
b. High-income and low-income people pay $200 each.
c. High-income people pay 20 percent of their income in taxes; low-income people pay 10 percent.
d. Both high-income and low-income people pay 10 percent of their income in taxes.
e. Low-income people are exempt from the tax.
B
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Firms in monopolistic competition resemble monopolies in that both types of firms
a. earn positive economic profits in the long run. b. charge prices higher than their marginal costs. c. possess barriers to entry that keep potential rivals out of the market. d. produce their output so that their average cost is minimized.
If the government begins to run a larger budget deficits, then assuming there is no Ricardo-Barro effect, the demand for loanable funds ________ and the real interest rate ________
A) decreases; falls B) decreases; rises C) increases; rises D) increases; falls
Eighteenth century declines in Atlantic and Caribbean shipping costs were due to:
a. the reduction in armaments on commercial vessels. b. decreased crew sizes. c. falling insurance rates. d. reduced layover times in ports. e. All of the above.
The time and money it takes to organize a group or a campaign and to get the attention of lots of busy people is the:
A. reason why all individuals never participate in any collective action. B. cost of collective action. C. initial set-up costs of the campaign or group. D. reason why collective action does not happen in the real world.