When income is $15,000, the amount of income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The average income tax rate when a person earns $15,000 is

The process by which financial institutions accept savings from businesses, households and governments and lend the savings to other businesses, households and governments is

A) asymmetric information. B) adverse selection. C) moral hazard. D) financial intermediation.

The more inelastic the demand for a product, the more the actual burden of a tax on the product will:

a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a larger deadweight loss (or excess burden).