Caleb teaches economics at Yucky State University and is paid 50,000 per year. He also provides economic forecasts for local business for which he charges 100 per hour. Which of the following is true?
a. all of Caleb's income is salary
b. some of Caleb's income is salary and some is personal interest
c. all of Caleb's income is proprietor's income
d. some of Caleb's income is salary and some is proprietor's income
e. all of Caleb's income is personal interest
QUESTION 2International trade occurs because the opportunity cost of producing specific goods differs across
a. firms
b. individuals
c. regions of the U.S.
d. countries
e. households
QUESTION 3Whether we look at marginal tax rates or average tax rates, the U.S. income tax is
a. progressive
b. based on the benefits received
c. proportional
d. regressive
e. All of the answers are correct.
QUESTION 4Katie had a before-tax income of 40,000 and paid taxes of 6,000 . Rinji had a before-tax income of 35,000 and paid taxes of 5,250 . Based on this information, the tax system is
a. There is insufficient information to answer the question.
b. progressive
c. based on the benefits received
d. regressive
e. proportional
QUESTION 5If one US dollar costs 0.8 Euros, then 1 Euro must cost how many US dollars?
a. 0.5
b. 0.8
c. 1.0
d. 1.25
e. 1.5
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