Sales and excise taxes tend to be ___________ because low income people tend to spend a _________ fraction of their income than high income people.
A. progressive; larger
B. regressive; larger
C. progressive; smaller
D. regressive; smaller
B. regressive; larger
You might also like to view...
The text considers three methods that can be used to obtain empirical estimates of long-run costs in different industries
Of those three, surveys of expert opinion are considered to be most reliable because they are less subject to bias than the other two methods. Indicate whether the statement is true or false
A Treasury expenditure financed through borrowing from the Federal Reserve will cause the money supply
A) and bank reserves to rise by an equal amount. B) and bank reserves to fall by an equal amount. C) to rise but bank reserves to rise by a greater amount. D) to rise by a greater amount than the rise in bank reserves.
During 1981-1985, the United States pursued a restrictive monetary policy that sharply lowered inflation. At the same time, large budget deficits helped push real interest rates to an all-time high. What would you expect to happen to the value of the dollar on the foreign exchange market?
Which of the following statements is true for the two countries illustrated in Figure 35.1?
A. Japan has an absolute advantage in motorcycles, the United States in DVD players. B. Japan has an absolute advantage in motorcycles. C. The United States has a comparative advantage in DVD players. D. The United States has a comparative advantage in motorcycles, Japan in DVD players.