1. As a result of U.S. tariffs imposed on wool from New Zealand, the quantity of this wool that is imported has
a. decreased.
b. not changed.
c. increased a lot.
d. changed but whether it has increased or decreased is ambiguous.
2. Suppose everybody paid the same total amount of tax regardless of their income. This type of tax system would be
Select one:
a. regressive.
b. proportional.
c. marginal.
d. efficient.
3. A minimum wage
a. increases all workers' surplus because the wage rate increases.
b. increases consumer surplus because the price of the good decreases.
c. decreases the firms' surplus because fewer workers are hired at the higher wage.
d. None of these answers is correct.
4. Assume that the government passes a tax so that every individual must pay $100. This tax is a
a. progressive tax.
b. proportional tax.
c. regressive tax.
d. type of tax that is impossible to determine without more information.