Which of the following tax structures helps in reducing income inequality?
a. Proportional tax structure
b. Regressive tax structure
c. Indirect tax structure
d. Progressive tax structure
e. A combination of proportional and regressive tax structure.
d
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Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The table below describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-HoursPer DayOutputPer Day0014048091201516023200When the firm uses 9 employee-hours, it earns a daily ________ of ________.
A. profit; $114 B. loss; $114 C. profit; $64 D. loss; $64
The management of Local Cinema has estimated the monthly demand for tickets to be ln Q = 22,328 ? 0.41 ln P + 0.5 ln M ? 0.33 ln A + 100 ln PDVD, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and PDVD = price of a DVD rental. It is known that P = $5.50, M = $9,000, A = $900, and PDVD = $3.00. Determine the own price elasticity of demand for movie tickets.
A. ?0.29 B. ?0.39 C. ?0.41 D. ?0.32