If the ________ tax rate equals the ________ tax rate, the tax would be proportional.
A. average; variable
B. sales; personal income
C. marginal; average
D. corporate income; personal income
Answer: C
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The table above presents the production possibilities frontier for a nation. Using the information in the table, when moving from possibility A to B to C to ultimately E, the cost of a unit of capital goods in terms of consumption goods
A) decreases. B) increases. C) remains the same. D) decreases from possibility A to C, and then increases from possibility C to D. E) cannot be calculated.
Why are U.S. government securities referred to as a bank's secondary reserves?
A) Their current market value may count toward meeting a bank's legal reserve requirements. B) They are very liquid. C) Banks are legally required to hold a certain minimum amount of these securities. D) They are the same thing as vault cash.
If the government imposes a price ceiling below the equilibrium price,
a. it must then buy up the surplus that is generated b. there will be an excess demand c. there will be an excess supply d. everyone who wants to buy this good will be happy e. the intent is to benefit producers
Which of the following most clearly distinguishes between positive and normative economics?
a. Positive economics is the study of what ought to be; normative economics is concerned with the facts. b. Positive economics is the study of the facts; normative economics is concerned with what ought to be. c. Positive economics is the study of supply and demand in narrowly defined markets such as the market for shoes; normative economics focuses on highly aggregated markets such as the market for all consumer products. d. Positive economics is the study of goods that are scarce; normative economics is concerned with goods that are not scarce.