Which of the following is NOT correct regarding the theories of income distribution?
A) Dealing with how income ought to be distributed is a normative issue.
B) The productivity standard for the distribution of income is stated "to each according to what they produce."
C) The egalitarian principle of income distribution is "to each exactly the same."
D) Dealing with how income should be distributed is a positive economic issue.
Answer: D
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If the interest rate increases from 5 percent to 7 percent, the present value of a future payment
A) rises. B) falls. C) is unaffected. D) might either rise or fall.
Which of the following has resulted from the North American Free Trade Agreement (NAFTA)?
a. trade between the United States and Mexico increased. b. trade between the United States and Canada increased. c. the joint output of the United States, Mexico, and Canada has increased. d. all of the above are correct.
Economist B believes that if tax rates are cut, tax revenue is likely to fall. This economist most likely believes that the percentage decrease in tax rates will ______________________________ percentage rise in the tax base
A) be larger than the resulting B) be equal to the resulting C) be smaller than the resulting D) occur long after the E) a and d
Gabriela earns $50,000 per year. Based on the table demonstrating three tax systems, how would a regressive tax affect her compared to the other two systems?
a. She would pay more than proportional and less than progressive.
b. She would pay more than progressive or proportional.
c. She would pay the same as progressive and proportional.
d. She would pay less than progressive or proportional.