Which of the following would indicate that an income tax is progressive?
a. high-income people pay $3,000 . low-income people pay $1,000
b. low-income people pay $3,000 . high-income people pay $1,000
c. high-income and low-income people all pay $1000 each
d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent
e. both high-income and low-income people pay 10 percent of their income in taxes
D
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Protection of new products from global competition is known as
A) the infant-industry argument. B) dumping. C) a quota. D) protection of domestic jobs.
Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. To receive a normal profit, the firm described above would have to
A. Earn $10,000 more in revenue. B. Experience $10,000 less in cost. C. Earn $90,000 more in revenue. D. Do nothing since it already earns a normal profit.