Suppose the Dow Jones Industrial Average has risen for three days in a row. According to the efficient markets theory of stock prices,
a. it will probably fall again tomorrow
b. it will probably rise tomorrow to compensate for recent losses
c. it is more likely to rise tomorrow than if it had fallen three days in a row
d. it is just as likely to rise again tomorrow as if it had fallen three days in a row
e. it will most likely remain unchanged tomorrow
D
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A tax that is levied in such a way that low-income taxpayers pay a greater proportion of their income toward taxes than do high-income taxpayers is called a:
A. proportional tax. B. progressive tax. C. regressive tax. D. flat tax.
Which of the following is considered to be a variable cost of operating an automobile?
a. insurance b. taxes c. car loan payment d. tires e. license and registration fees
Recent legislation provides parents with a substantial reduction in their personal income tax liability for each child that they have. The economic way of thinking indicates that legislation of this type will
a. make it more costly for parents to provide for their children. b. reduce the value of children to their parents and, therefore, lead to a reduction in the birth rate. c. reduce the after-tax cost of raising children and, therefore, increase the birth rate. d. exert no impact on either the cost of raising children or the birth rate since having children is a not an economic activity.
Figure 10-4
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In Figure 10-4, if full employment occurs at an output level of 4,000 and the economy is currently at an output level of 5,000, then we can expect a(n)
A. increase in autonomous consumer spending that shifts the aggregate demand curve to the left. B. increase in wages that will shift the aggregate supply curve to the left. C. decrease in investment spending that shifts the aggregate demand curve to the left. D. decrease in wages that will shift the aggregate supply curve to the left.