Which of the following would indicate that a tax is regressive?
a. High-income people pay $5,000 . low-income people pay $2,000.
b. High-income and low-income people pay $200 each.
c. High-income people pay 20 percent of their income in taxes; low-income people pay 10 percent.
d. Both high-income and low-income people pay 10 percent of their income in taxes.
e. Low-income people are exempt from the tax.
B
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If the government implements a price ceiling on insulin, this will
A) decrease the quantity of insulin the manufacturers will be willing to supply. B) encourage manufacturers to produce and sell more insulin to increase their profits. C) have to be set above the market equilibrium price to be effective. D) increase the price consumers will pay for insulin.
Current account transactions are payments that are related to the purchase or sale of
A) financial instruments only. B) both goods and services. C) goods only. D) services only.