Taxes in the United States as a percentage of GDP are among the highest in the world.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2A tariff has the effect of:
a. raising the price of the exported product.
b. increasing the demand for the exported product.
c. increasing the demand for the imported product.
d. increasing the supply of the imported product.
e. raising the price of the imported product.
QUESTION 3A movement along the consumption function is caused by a change in:
a. the price level.
b. autonomous consumption.
c. real disposable income.
d. the stock of durable goods.
QUESTION 4Under a progressive tax system, the tax rate increases as income increases.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5A tariff is a:
a. tax on an exported product.
b. limit on the number of goods that can be exported.
c. limit on the number of goods that can be imported.
d. tax on an imported product.
e. subsidy on an imported product.
QUESTION 6Consider the Keynesian consumption function. If disposable income is greater than the break-even level of disposable income, then households will be:
a. investing.
b. borrowing.
c. dissaving.
d. saving.
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