Explain the difference between a regressive tax and a progressive tax
What will be an ideal response?
A regressive tax is a tax that takes a larger share from the income of low-income taxpayers than it does from high-income taxpayers. A progressive tax is a tax that takes a larger share from the income of high-income taxpayers than it does from low-income taxpayers.
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A black market for housing exists because of a rent ceiling. The rent for housing in the black market is
A) the same as the equilibrium rent. B) lower than the ceiling rent. C) somewhere between the ceiling rent and the maximum rent a tenant is willing to pay. D) somewhere between zero and the equilibrium rent. E) not defined because the market is not legal.
Consider the monopolist depicted in the figure above. The profit maximizing level of output for a single-price monopolist is
A) 7. B) 11. C) 13. D) 22.