A regressive tax is one where the taxpayer's percent of income paid in taxes will ____ as incomes increase. An example is the ____
a. decrease; sales taxes on food
b. decrease; state corporate income taxes
c. increase; property taxes on residential real estate
d. increase; federal household income taxes
Ans: a. decrease; sales taxes on food
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Refer to Figure 3.1. If Marge and Homer both deny committing the crime, what is Marge's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should
a. lend support to the invisible hand by maintaining property rights and political stability. b. lower barriers and impediments to free trade. c. encourage capital formation. d. target and subsidize specific industries important for technological progress.
Describe the monetary policy known as inflation targeting. What are the three major issues that surround this practice?
Which statement is true?
A. In 1911 the Supreme Court decided to break up the oil and tobacco trusts. B. The rule of reason today is partially in force. C. Until the ALCOA case, the Supreme Court generally held that bigness was all right as long as the company wasn't bad. D. All of the statements are true.