Saving divided by income equals the _______ rate.

When positive economic profits exist in an industry:

A) the market price of the good produced by the industry is less than the average total cost of the industry. B) resources flow from less productive uses to that particular industry. C) there is an exit of firms from the industry. D) the market price of the good produced by the industry is less than the marginal cost faced by the industry.

If Linda’ annual income is $160,000 and she pays $35,000 in taxes, and Paul’s annual income is $100,000 and he pays $25,000 in taxes, the tax system is

A. regressive. B. progressive. C. proportional. D. degressive.