Question

Question 74 pts

In a progressive tax structure:

the tax rate falls,but the absolute tax amount increases with an increase in income.

the tax rate remains constant, but the absolute tax amount increases with an increase in income.

the tax rate increases, but the absolute tax amount decreases with an increase in income.

both the tax rate and absolute tax amount increase with an increase in income.

both the tax rate and absolute tax amount decline with an increase in income.

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Question 84 pts

The official poverty-line income is adjusted annually for _____.

unemployment compensation benefits

inflation

increases in health-care costs

income taxes

house rents

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Question 94 pts

The figure given below shows the Lorenz curves of two countries (Country A and Country B).
Figure 19.2
Total income (cumulative percentage)

         Total population (cumuative percentage)

100 90 80 70- 60 50 40 30 20 10 Country A Country B o 10 20 30 40 50 60 70 80 90 100

Refer to Figure 19.2. The richest 20 percent of the population in Country A receive:

40 percent of the national income.

50 percent of the national income.

10 percent of the national income.

30 percent of the national income.

20 percent of the national income.

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Question 104 pts

The allocations of goods and services from one group in a society to another are called:

grants.

in-kind transfers.

economic rents.

transfer earnings.

mutually voluntary exchanges.

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Question 114 pts

The product life cycle theory of comparative advantage predicts that a new product will first be produced and exported by:

the countries with the most stable economy and fewest restrictions on foreign trade.

the nation in which it was invented.

the company with the most extensive network of international distributors for the product.

the nation that was first to demand the new product.

the first firm to successfully copy the technology.

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Question 124 pts

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers. Australia can make 1,000 computers or 2,000 units of food in a day, and the Philippines can make 200 computers or 1,200 units of food in a day.
Table 20.2

According to Table 20.2, Australia has an:

absolute advantage in the production of only food.

absolute disadvantage in the production of both food and computers.

absolute advantage in the production of only computers.

absolute advantage in the production of both food and computers.

absolute disadvantage in the production of food.

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Question 134 pts

Scenario 20.1
Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar.

Refer to Scenario 20.1. Which of the following statements is true?

Chile has a comparative advantage in producing both coffee and sugar.

Brazil has a comparative advantage in producing sugar.

Neither Chile nor Brazil has a comparative advantage in producing coffee.

Brazil has a comparative advantage in producing coffee.

Brazil has a comparative advantage in producing both coffee and sugar.

Answer 1

7) both the tax rate and absolute tax amount increase with an increase in income. This is because the tax rate varies with income and is related directly to it.

8) Inflation because it reduces the real purchasing power of the income

9) 40 percent of the national income. This is because 80 percent of population is earning only 60 percent

10) in-kind transfers.

11) the nation in which it was invented

12) absolute advantage in the production of both food and computers.

13) Brazil has a comparative advantage in producing sugar.