If the government uses a head tax to finance a public good, then the:
A. proportion of income paid in taxes increases as income rises.
B. proportion of income paid in taxes declines as income rises.
C. proportion of income paid in taxes is constant.
D. dollar amount paid by each taxpayer declines as income rises.
Answer: B
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In the above figure if money income increases, the budget line
A) shifts outward and its slope does not change. B) shifts inward and its slope does not change. C) rotates outward and becomes steeper. D) rotates outward and becomes more shallow.
If in some production range average cost is rising, the firm is experiencing
A. increasing returns to scale. B. decreasing returns to scale. C. constant returns to scale. D. increasing costs per unit of output.
The stable outcome of the game in the figure shown will be:
A. Nike charges a low price, and Adidas charges a high price. B. Nike and Adidas both charge a high price. C. Nike charges a high price, and Adidas charges a low price. D. Nike and Adidas both charge a low price.
Industrialized countries generally have higher levels of educational attainment compared with poorer countries.
Answer the following statement true (T) or false (F)