Which of the following examples illustrates a proportional income tax?
a. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,000 in taxes.
b. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $500 in taxes.
c. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $800 in taxes.
d. I earn $5,000 and pay $500 in taxes; you earn $10,000 and pay $1,200 in taxes.
A
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In the above table, the private sector has a
A) surplus of $300 billion. B) deficit of $300 billion. C) deficit of $200 billion. D) deficit of $400 billion.
If people like their goods in fixed proportions, the two goods are
a. perfect substitutes b. perfect complements c. complements (but not perfect) d. substitutes (but not perfect)
The process by which new products and methods of production are continuously replacing old ones is known as
a. the invisible hand principle. b. the production possibilities frontier. c. creative destruction. d. the fallacy of composition.
If the annual inflation rate is higher than 0%, which of the following statements is correct?
a. The specific country is experiencing hyperinflation when viewed over a long period of time. b. Real GDP growth must be higher than nominal GDP growth. c. Nominal GDP growth must be higher than real GDP growth. d. Nominal GDP growth is only higher than real GDP growth if real GDP growth is positive. e. Nominal GDP growth must be positive.