What are the different types of tax systems? Give one example of each type of tax
What will be an ideal response?
In progressive tax systems, higher income levels face higher average tax rates. In a proportional tax system, households pay the same percentage of their incomes in taxes regardless of their income level; in other words, the average tax rate does not vary with income. In a regressive tax system, the average tax rate declines with income so that low-income households pay a greater percentage of income in taxes than do high-income households. In the United States, income taxes (except flat-rate state and local income taxes) are progressive. Social Security and sales taxes are regressive.
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Which of the following sequences accurately describes the evolution of the payments system?
A) barter, coins made of precious metals, paper currency, checks, electronic funds transfers B) barter, coins made of precious metals, checks, paper currency, electronic funds transfers C) barter, checks, paper currency, coins made of precious metals, electronic funds transfers D) barter, checks, paper currency, electronic funds transfers
Rebecca consumes both iced tea and coffee. Iced tea is priced at $1.50 per bottle and coffee at $2.00 per 16-ounce cup. Which of the following marginal utility pairs is consistent with Rebecca's consumer equilibrium at these prices?
a. MU of iced tea = 1; MU of coffee = 1 b. MU of iced tea = 1; MU of coffee = 2 c. MU of iced tea = 2; MU of coffee = 3 d. MU of iced tea = 3; MU of coffee = 4
International trade is beneficial to a participating country when that country has a particular product that it is able to sell at a lower price compared to other participating countries
a. True b. False Indicate whether the statement is true or false
Which of the following would increase GDP?
a. You buy 100 shares of Wal-Mart stock. b. Your car is destroyed by a fire, and you purchase a two-year-old car to replace it. c. Your car is damaged by a fire, and you hire a mechanic to repair it. d. Your car is damaged by a fire, and you reduce the number of hours you work to repair the car yourself.