Permanent income is ?

Related Mcqs:

1. The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ?

   A. less than $900, $900-$9000 and more than $9000
   B. less than $5000, $5000-$15000 and more than $15000
   C. less than $100, $100-$1000 and more than $1000
   D. less than $5000, $5000-$150000 and more than $150000

2. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

3. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

4. Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution ?

   A. accurately represent the true inequality of living standards
   B. understate the inequality of living standards
   C. exaggerate the inequality of living standards
   D. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.

5. A tax whose burden expressed as a percentage of income, falls as income increases is a ?

   A. benefits received tax
   B. progressive tax
   C. regressive tax
   D. proportional tax

6. Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?

   A. exaggerate the inequality of living standards
   B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
   C. understate the inequality of living standards
   D. accurately represent the true inequality of living standards

7. Mariam earns more than Seamus and she came by her income fairly and honestly which of the following political philosophies would argue against the redistribution of income from Mariam to Seamus ?

   A. all of these answers
   B. libertarianism
   C. utilitarianism
   D. none of these answers

8. Rank utilitarianism liberalism, and libertarianism in sequence from the political philosophy that would redistribute income the greatest to the one that would redistribute income the least?

   A. utilitarianism, liberalism, libertarianism
   B. All three political philosophies argue for similar degree of income redistribution
   C. liberalism, libertarianism, utilitarianism
   D. libertarianism liberalism, utilarianism
   E. libertariansim, utilitarianism, libertarianism

9. A progressive income tax means that those with a higher income pay ?

   A. a higher percentage of their income in taxes then low income people
   B. a lower percentage of their income in taxes than low income people
   C. the same percentage of their income in taxes as low income people all the taxes in the economy.
   D. all the taxes in the economy

10. Within the circular flow of income, an increase in domestic income will tend to increase ?

    A. exports
    B. taxes
    C. inventories
    D. imports