ECON - Exam 3

Refer to the table, in which the value for coups (2) through (5) are in acres. If the relevant coulis are (1), (2), and (3), land rent will be

$200 per acre

A progressive tax is such that:

tax rates higher the great one's income

Suppose that interest payments are $140 per year on a $1,000 loan and $1,188 per year on a $8,485 loan. The interest rates on the two loans are:

14 percent on both loans

The data represent a personal income tax schedule. Answer the question on the basis of this information. Refer to the table. If your taxable income is $8,000, your average tax rate is:

25 percent and the marginal rate on additional income is 40 percent.

The largest source of tax revenue for the U.S. federal government is:

A personal income taxes

The rent paid for the pasture land used to graze cattle would increase if:

Any of the above occurred

As a proportion of domestic output, taxes in the United States:

Are lower than in most other industrially advanced countries

Refer to the diagrams. Assume that only wheat can be grown on the three grades of land shown in Figures a, b, and c. Also assume that identical amounts of labor capital, and other needed inputs are used in farming each grade of land. On the basis of these three figures we:

Can say that the land in figure c is most productive

Refer to the diagram, in which solid arrows reflect real flows broken arrows are monetary flows. Flow (2) might represent:

Corporate income tax payments

The price paid for the use of land declines as more land is Brough into use. As a result the:

Demand curve for land is downslopping

Which of the following statements is correct?

Economic rent is the price paid for land resources whose supply is perfectly inelastic

Refer to the above diagram. If the supply of loanable funds is S1 and the demand for loanable funds is D1, the equilibrium interest rotate and quality of funds borrowed will be:

F and A

Refer to the diagram, in which solid arrows reflect real flows broken arrows are monetary flows. Flow (1) might represent:

Government provision of highways for business truck transportation

Refer to the diagram, in which solid arrows reflect real flows broken arrows are monetary flows. Flow (3) might represent:

Government salaries paid to school teachers

The total amount of U.S. to revenue needed to finance the public sector:

Is larger today, as a percentage of total output, than in 1960

The demand for farmland will increase if:

Technological advances make land more productive

Economic or pure rent is:

The price paid for the use of land and other non reproducible resources

Refer to the diagram. Land:

Would be free resource if demand D4 or less

Which of the following is not an important source of revenue for the Federal government?

property taxes

The three most important source of federal tax revenue in order of descending importance are:

personal income taxes, payroll, and corporate income taxes