QUESTION 18
Which of the following is a barrier to trade?
A.
Embargoes.
B.
Tariffs.
C.
All of the above.
D.
Quotas.
Wealth:
A.
Tends to be distributed much less equally than income.
B.
Is the market value of assets.
C.
All of the above.
D.
Represents a stock of potential purchasing power.
Suppose Mr. Lee has total income of $120,000, has taxable income
of $90,000, and pays $30,000 in taxes. Considering the information
presented, what is Mr. Lee's effective tax rate?
A.
66.7 percent.
B.
25 percent.
C.
72 percent.
D.
33.33 percent.
If the percentage of income paid in taxes increases as income
rises, then the tax system is:
A.
Regressive.
B.
Progressive.
C.
Marginal.
D.
Nominal.
If Alejandra makes $46,000 per year as a nurse and pays $7,000
in taxes while Emily makes $46,000 per year as a high school
teacher and pays $6,500 in taxes, this is an example of:
A.
Horizontal inequity.
B.
Marginal inequity.
C.
A flat tax.
D.
Vertical inequity.
3.33 points
QUESTION 26
Free trade results in reduced prices and increased
consumption.
True
False
If tax elasticity of supply is 0.8 and tax rates increase by 10
percent, the quantity of labor supplied would:
A.
Decrease by 1.25 percent.
B.
Decrease by 8 percent.
C.
Increase by 1.25 percent.
D.
Increase by 8 percent.
By the year 2030 in the United States there will be ____ workers
for every retired person.
A.
8.
B.
1.
C.
4.
D.
2.