A regressive tax is one in which the average tax rate falls as income rises

Which of the following is NOT a problem in the implementation of industrial policies?

A) Choosing the industry to target B) Knowing the optimum amount of resources to provide the targeted industry C) The encouragement of rent seeking by firms in other industries D) The benefits are partly captured by foreign firms. E) All of the above are problems.

In the early 1980s, the government used fiscal policy to fight a recession by ______.

a. increasing tax rates b. lowering tax rates c. limiting government spending d. suspending unemployment benefits