A proportional tax charges the same percentage of income, regardless of the size of income.

A proportional tax charges the same percentage of income, regardless of the size of income.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

One big difference between tariffs and quotas is that tariffs:
 a. raise the price of a good while quotas lower it.
  b. generate tax revenues while quotas do not.
  c. stimulate international trade while quotas inhibit it.
  d. hurt domestic producers while quotas help them.
  e. give the same outcome as free trade while quotas do not.

QUESTION 3

The consumption function shows the relationship between consumption and:
 a. interest rates.
  b. saving.
  c. price level changes.
  d. disposable income.

QUESTION 4

State and local sales taxes are typically progressive.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

How is a tariff different from a quota?
 a. A tariff sets a limit on the quantity of a good that may be imported, while a quota is a tax on an import.
  b. A tariff and a quota are different words for the same thing.
  c. A tariff is a tax on an import, while a quota set a limit on the quantity of a good that may be imported.
  d. None of the above are correct.