"Only in a progressive tax system does the amount of taxes increase as income increases." Do you agree or disagree? Explain
What will be an ideal response?
Disagree. In all of the three tax systems (progressive, regressive and proportional), the amount of taxes can increase as income increases. In a progressive system, however, not only the amount of taxes increases but also the percentage income paid in taxes increases as income increases.
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If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to
A) its excess reserves. B) 10 times its excess reserves. C) 10 percent of its excess reserves. D) its total reserves.
Sally and Harry both work at the local factory producing cars. Sally earns $22 per hour working the day shift, and Harry earns $25 per hour working the night shift. Sally and Harry do the same job, have the same experience, and have the same level of education. This means that the
a. higher-paying job has a compensating wage differential of $3 per hour. b. higher-paying job has a compensating wage differential of $25 per hour. c. higher-paying job is intrinsically more attractive than the lower-paying job. d. factory is discriminating against Sally because she is a woman.
When competing firms have a commitment strategy, it is called:
A. collusion. B. predatory pricing. C. competition. D. competitive cooperation.
In a typical year, about what percentage of the world’s output is traded in international markets?
a. 85% b. 55% c. 35% d. 15%