Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the flat-tax rate is 20 percent, then
a. the government collects a total of $20,000
b. Gary pays twice the tax amount Sandy pays
c. Gary pays three times the tax amount Sandy pays
d. Gary and Sandy pay exactly the same tax amount
e. Gary pays $15,000 in taxes
B
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In the long run, the economic profit of Hoot's Pump Chicken 'n' Ribs, a monopolistic competitor,
a. is not eliminated because competition is not perfect b. is not eliminated because the demand curve slopes downward c. is eliminated because of new firms entering the industry d. is eliminated because of firms leaving the industry e. is not eliminated because new firms cannot enter the industry
A cash gift causes the budget line to:
A. shift to the right in a parallel fashion. B. rotate clockwise. C. shift to the left in a parallel fashion. D. None of the statements is correct.