The Social Security tax is regressive because
A. the Social Security tax rate applied does not rise with the salary level.
B. each individual must pay a set percentage of his or her income in Social Security taxes.
C. as income increases, the Social Security tax rate increases at a decreasing rate.
D. no Social Security tax is collected for incomes in excess of a "cap" income level.
Answer: D
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Given its size, the United States does not have to worry about limitations on resources
a. True b. False Indicate whether the statement is true or false
Monopolistic competitive firms are productively inefficient because production occurs where
A. average total cost is not at its lowest. B. marginal cost is not at its lowest. C. marginal cost is less than price. D. price is greater than marginal revenue.
An unanticipated increase in the money supply will lead to
What will be an ideal response?
In a market for a homogeneous good, if sellers and buyers can enter or exit a market freely, the market is most likely:
A. an oligopoly. B. a monopolistically competitive market. C. a monopoly. D. a perfectly competitive market.