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A tax that takes a _____ percentage of income as income _____ is a _____ tax.

Select one:

a. lower; rises; progressive

b. lower; rises; regressive

c. higher; rises; proportional

d. higher; falls; proportional

The incidence of a tax:

Select one:

a. refers to how much of the tax is actually paid by consumers and producers.

b. is a measure of the revenue the government receives from it.

c. refers to who writes the check to the government.

d. is a measure of the deadweight loss from the tax.

When a market begins to engage in international trade:

Select one:

a. producers in the importing industry are better off.

b. consumers of the imported good may be worse off.

c. producers in the exporting industry may be better off.

d. consumers of the exported good may be better off.

As measured by a percentage of the entire economic output:

Select one:

a. foreign trade is more important for the United States than it is for most other countries.

b. foreign trade is just as important for the United States as it is for most other countries.

c. the United States ranks highest in the world.

d. foreign trade is less important for the United States than it is for many other countries.

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