Joshua makes $50,000 a year and pays 24% in income tax. Zoe makes $90,000 a year and pays 28% in income tax. What type of tax structure explains this difference?
A.
Progressive
B.
Proportional
C.
Flat
D.
Regressive
A. Progressive
n the late 19th century United States, there were several giant businesses known as 'trusts.' They controlled whole sections of the economy, like railroads, oil, and steel. Two of the most famous trusts were U.S. Steel and Standard Oil. These trusts were so powerful that they dominated their entire industries and threatened competition in the market place. To protect competition, the United States Congress enacted the Sherman Anti-Trust Law in 1890 and these trusts were broken up. The goal of these laws was to promote competition in the marketplace for the benefit of consumers.
Which of the options below match the ideas in this passage the best?
A.
A command economy
B.
The role of the government in regulating the economy
C.
The effect of supply and demand have on the price of goods and services
D.
The benefits of capitalism
B. The role of the government in regulating the economy
What role does the entrepreneur play in the market economy?
A.
The entrepreneur provides the labor and physical capital to produce goods and services
B.
The entrepreneur uses land, labor and capital to produce goods and services for society.
C.
The entreprenuer only exists in command economies.
D.
The entrepreneur decides how society should manage and use its unlimited resources.
B. The entrepreneur uses land, labor and capital to produce goods and services for society.
Which of the following decisions would increase the likelihood a person experiences poverty during their lifetime?
A.
Going to community college and working part-time right out of high school.
B.
Joining the military right out of high school.
C.
Dropping out of high school.
D.
Going to college right out of high school
C. Dropping out of high school.
What key information does the interest rate on a loan provide?
A.
Information about the additional money you will have to pay back to the lender.
B.
Information about the credit history of the lender.
C.
Information about the length of the loan.
D.
Information about the total payment due each month.
A. Information about the additional money you will have to pay back to the lender.
Devante inherited $20,000 from his grandparents and decided to invest it in the stock market. A friend who is a financial advisor told him to invest in several different stocks. Why did he recommend this strategy?
A.
Ensure the chances of higher returns on his investment.
B.
Diversify his investment to reduce risk.
C.
Gurantee a profit on his investment.
D.
Poor advice, concentrate on one stock.