Jose pays a tax of $24,000 on his income of $60,000 . while Richard pays a tax of $3,000 on his income of $30,000 . This tax is:
a. a flat tax.
b. progressive.
c. proportional.
d. regressive.
b
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Which of the following is not a form of nonmarket work?
a. working on your car at home b. doing your laundry in a laundromat c. making bread for a dinner at your sister's house d. caring for your sister's children as a favor e. babysitting for a fee
A community has five voters who are interested in only one issue: the government's spending on local parks. If Andre would like the government to spend $12,000 on parks, Brandon prefers $7,000, Charlene prefers $4,000, Dennis prefers $2,000, and Ernie prefers $0, how much spending would a politician seeking to win the election select when running against one opponent?
a. $2,000 b. $4,000 c. $7,000 d. $12,000
When the purchasing power of money is stable and predictable, this
A) increases transactions costs. B) facilitates gains from specialization, investment, and trade. C) encourages the use of bartering. D) makes it risky for individuals and businesses to save and borrow.