A tax system that applies a lower marginal tax rate at higher levels of income is
A) progressive.
B) regressive.
C) proportional.
D) flat.
Answer: B
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The official mission of the World Bank is to
A) establish exchange rates between the currencies of member nations. B) provide funding for needed development projects that would have difficulty attracting private investment. C) advise member nations on the appropriate levels of taxation. D) fight global inflation.
Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer
If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals A) 13.33. B) 26.78. C) 1.96. D) 0.51. E) zero.
Last year, Jack's income was $15,000 and he bought 50 bags of potato chips. This year his income is $18,000 and he buys 55 bags of potato chips. Therefore, Jack's
A) income elasticity of demand for potato chips is 0.52. B) price elasticity of demand for potato chips is 0.52. C) income elasticity of demand for potato chips is 1.66. D) price elasticity of demand for potato chips is 1.66.
You are expecting to receive $750 at some time in the future. Which of the following would unambiguously decrease the present value of this future payment?
a. Interest rates rise and you get the payment sooner. b. Interest rates rise and you have to wait longer for the payment. c. Interest rates fall and you get the payment sooner. d. Interest rates fall and you have to wait longer to get the payment.