The Social Security tax is regressive because:
A. The Social Security tax rate applied does not rise with the salary level
B. No Social Security tax is collected for incomes in excess of a "cap" income level
C. Each individual must pay a set percentage of his or her income in Social Security taxes
D. As income increases, the Social Security tax rate increases at a decreasing rate
B. No Social Security tax is collected for incomes in excess of a "cap" income level
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Critics of the supply-side tax cuts proposed by the Reagan administration argued that lower taxes would:
a. increase the budget deficit. b. decrease money supply in the economy. c. reduce the aggregate price level. d. reduce the disposable income of households. e. reduce the volume of international trade.
Economists and others use economic theory
a. only to analyze situations in which money changes hands. b. as a partial basis for public policy recommendations. c. to confuse their enemies. d. to replace value judgments about important policy issues.
When unions successfully raise wage rates,
a. the employer must cut benefits b. fewer workers may be employed c. there is decreasing pressure for workers to join the market d. a strike occurs e. the monopsony keeps the same return to monopsony power
A production indifference curve describes the input combinations that will produce a given output
a. True b. False Indicate whether the statement is true or false