An income tax is defined as regressive if
a. the tax liability of those with higher incomes exceeds the tax liability of those with low incomes.
b. the tax liability of those with higher incomes is less than the tax liability of those with low incomes.
c. those with higher incomes pay a higher percentage of their incomes in taxes than those with low incomes.
d. those with higher incomes pay a lower percentage of their incomes in taxes than those with low incomes.
D
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?
A) If the price of pecans is $3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient. B) If the price of pecans is $9 consumers will purchase more than the economically efficient output. C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output. D) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss.
You are offered a free ticket to see the Chicago Cubs play the Chicago White Sox at Wrigley Field. Assume the ticket has no resale value. Willie Nelson is performing on the same night, and his concert is your next-best alternative activity. Tickets to see Willie Nelson cost $40 . On any given day, you would be willing to pay up to $50 to see and hear Willie Nelson perform. Assume there are no
other costs of seeing either event. Based on this information, at a minimum, how much would you have to value seeing the Cubs play the White Sox to accept the ticket and go to the game? a. $0 b. $10 c. $40 d. $50