An income tax in which the average tax rate is the same for all taxpayers would be considered a
a. progressive tax.
b. regressive tax.
c. distortion-free tax.
d. proportional tax.
d
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Suppose a profit-maximizing monopoly is able to employ group price discrimination. The marginal cost of providing the good is constant and the same in both markets
The marginal revenue the firm earns on the last unit sold in the market with the higher price will be A) greater than the marginal revenue the firm earns on the last unit sold in the market with the higher price. B) less than the marginal revenue the firm earns on the last unit sold in the market with the higher price. C) equal to the marginal revenue the firm earns on the last unit sold in the market with the higher price. D) greater than the marginal cost of the last unit.
Assume the production of a good gives rise to external benefits. The government may increase efficiency by
A) subsidizing consumption of the good. B) requiring all producers of the good to be licensed. C) taxing production of the good. D) imposing taxes on the good.
Economists who propose a constant-money-growth-rate rule often argue that setting the annual growth rate in the money supply equal to the average annual growth rate in Real GDP
A) maintains price level stability over time. B) is a way to raise Real GDP. C) will cause the price level to fall over time. D) a and b E) a, b and c
An income tax is a tax:
A. on income earned by buying investments and selling them at a higher price. B. charged on the earnings of individuals and corporations. C. charged on the value of a good or service being purchased. D. on the wages paid to an employee.