The real rate of interest is defined as a zero b the

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COMPREHENSIVE PRACTICE SET BEFORE MIDTERM 2 with solution

63 )   The cost of inflation to society includes
 I . The opportunity costs of resources used by people to protect themselves against inflation
59 )   Most of the problems caused by inflation are caused by the fact that
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60 )   Suppose the tax rate on the first $ 10,000 income is 0 percent ; 10 percent on the next $ 20,000 ; 20 percent on the next $ 20,000 ; 30 percent on the next $ 30,000 ; and 40 percent on any income over $ 80,000 . Family A has income of $ 40,000 and Family B has income of $ 100,000 . What is the marginal and average tax rate for each family ?
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61 )   The real rate of interest is defined as
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62 )   When the unanticipated inflation rate is zero ,
A ) creditors gain at the expense of debtors .
B ) debtors gain at the expense of creditors .
C ) 
D ) both creditors and debtors lose at the expense of the government .
Answer:  C )   neither creditors not debtors gain or lose .
64 )   Which of the following statements is FALSE ?
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65 )   Which of the following statements is FALSE ?
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66 )   Which of the following is consistent with the circular flow of income ? I. Goods and services flow in one direction . II . Payments and incomes flow in one direction . III . Sellers receive less than what buyers spend .
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67 )   According to the circular flow , the value of total output produced and total income
A ) should differ by the value of intermediate goods .
B ) should increase by the unanticipated rate of inflation .
C ) will always be increasing in a capitalist economy .
D ) will be equal .
Answer:  D )   will be equal .
68 )   One of the principles behind the concept of the circular flow is that
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69 )   The circular flow of income shows
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70 )   In the simple circular flow model ,
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71 )   In the circular flow model , profits are considered to be
A ) a subtraction from the Gross Domestic Product ( GDP ) .
B ) 
C ) equal to zero , or else the circular flow would be out of balance .
D ) a form of interest payment .
Answer:  B )   a cost of doing business .
72 )   Economists consider profit to be
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Income Tax Fundamentals 2020
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Chapter 4 / Exercise 8
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
Expert Verified
61) The real rate of interest is defined asA) zero.B) the nominal rate of interest.C) the nominal rate of interest minus the anticipated inflation rate.D) the nominal rate of interest plus the anticipated inflation rate.Answer:
C62) When the unanticipated inflation rate is zero,
C63) The cost of inflation to society includesI.The opportunity costs of resources used by people to protect themselves against inflation
We have textbook solutions for you!
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Income Tax Fundamentals 2020
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise 8
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
Expert Verified
II.The costs associated with recalculating prices
CQUESTIONS FROM CHAPTER 8 : DO THEM WHEN WE COMPLETE CHAPTER 8 IN CLASS64) Which of the following statements is FALSE?
B65) Which of the following statements is FALSE?A) The value of total income is equal in value to total output because profit is a cost of production.B) In the circular flow model, households sell factor services to businesses in return for factor payments.C) Businesses sell goods and services to households who use their income to pay for them.D) Total income is always greater than total output.Answer:
D66) Which of the following is consistent with the circular flow of income?I.Goods and services flow in one direction.II.Payments and incomes flow in one direction.III. Sellers receive less than what buyers spend.
D
67) According to the circular flow, the value of total output produced and total income
D68) One of the principles behind the concept of the circular flow is that
A

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