Sharon pays a tax of 4,000 on her income of 40,000 . while Brad pays a tax of 1,000 on his income of ...

Sharon pays a tax of 4,000 on her income of 40,000 . while Brad pays a tax of 1,000 on his income of 20,000 . This tax is:
 a. regressive.
  b. progressive.
  c. proportional.
  d. a flat tax.

QUESTION 2

Opening trade between two nations would:
 a. shift their production possibilities curves outward.
  b. shift their production possibilities curves inward.
  c. leave the production possibilities unchanged and increase their consumption possibilities.
  d. leave the production possibilities unchanged and decreased their consumption possibilities.

QUESTION 3

Inflation reduces the purchasing power of nominal income and increases the purchasing power of fixed income.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Which of the following is an example of a progressive tax?
 a. The excise tax on cigarettes.
  b. The federal tax on gasoline.
  c. The federal personal income tax.
  d. All of these.

QUESTION 5

Without trade, the consumption possibilities for two nations are:
 a. outside their production possibilities curve.
  b. inside their production possibilities curve.
  c. along their production possibilities curve.
  d. at a point equal to the world production possibilities curve.

QUESTION 6

Real income is the purchasing power of nominal (money) income.
 a. True
  b. False
  Indicate whether the statement is true or false