Which of the following is true of a proportional tax rate?
a. It is a tax rate that remains constant as the tax base changes
b. It is a tax rate that decreases as the tax base increases.
c. It is a tax rate that increases as the tax base increases.
d. It is a tax rate that increases as the tax base increases and then decreases as the tax base decreases.
a
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Leaving open-access resources open to all people but restricting the intensity of the use of the resources assigns
A) permanent property rights to the government. B) temporary property rights to those people given permission to use the resource. C) property rights to no one since the intensity of the use of the resource has been restricted. D) property rights to everyone since the resource is available to be used by everyone.
Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will not change. B) GDP will increase. C) GDP will decrease. D) GDP may increase or may decrease depending on inflation.