If the price elasticity of demand is infinite, demand is:
A. upward sloping.
B. inelastic.
C. elastic.
D. perfectly elastic.
Answer: D
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Comparing individuals taxes paid in one year with their incomes paid that year is likely to _____
a. overstate the progressive nature of the tax system b. overstate the regressive nature of the tax system c. understate the progressive nature of the tax system d. overstate the regressive nature of the tax system
It can be argued that Thomas Malthus' An Essay on the Principle of Population statement that population growth will always outstrip food production has been discredited due to
A) increase in the world-wide farming population. B) less world-wide consumption of grains. C) improvement in technology of food production. D) increase in food processing facilities.
Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. In the absence of any earnings, Leo will receive ________ in cash from each program, for a total of ________ in benefits.
A. $225; $400 B. $200; $400 C. $225; $450 D. $225; $225
Refer to the information provided in Table 19.4 below to answer the question(s) that follow.Table 19.4Total IncomeTotal Taxes$10,000 $1,000 20,000 2,400 30,000 4,500 40,000 8,000Related to the Economics in Practice on page 393: Refer to Table 19.4. At an income level of $10,000, the average tax rate is
A. 1%. B. 5%. C. 10%. D. 20%.