". VdoTips: Economic Practice Test 1

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Economic Practice Test 1

1. The largest source of tax revenue for the federal government is:
A. the personal income tax
B. the social security tax
C. the property tax
D. the sales tax


2. When my income was $100,000, I paid $10,000 in taxes. When my income became $200,000, I paid $40,000 in taxes. My marginal tax rate is:
A. 10%
B. 20%
C. 30%
D. 40%


3. The tax is question #2 is:
A. progressive
B. regressive
C. proportional


4. Which of the following taxes is regressive?
A. the federal income tax
B. the state income tax
C. the sales tax
D. the Medicare tax


5. Assume that there are two goods, A and
B. In 1996, Americans produced 10 units of A at a price of $10 and 20 units of B at a price of $20. In 2002, Americans produced 20 units of A at a price of $20 and 30 units of B at a price of $30. The Nominal GDP for 2002 is:
A. $100
B. $400
C. $500
D. $1300