Progressive income tax structures tend to make incomes less equal.
Answer the following statement true (T) or false (F)
False
Progressive income taxes take a larger fraction of a high-income individual's earnings, thereby making after-tax income more equal.
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The marginal cost to the phone company of handling a long distance call is likely to be
A) higher the fewer such calls people make. B) higher the more the phone company has invested in equipment. C) substantially less than the price charged for the call. D) substantially more than the price charged for the call.
Why might an equation that has always predicted accurately in the past prove to be wrong following a policy change?
a. Because the policy may change people's behavior and invalidate the equation. b. Because people's expectations may cease to be rational. c. Because uncertainty means that every equation contains some degree of error. d. Because the policy change may affect economic variables not contained in the equation.
Predatory pricing occurs when
a. firms collude to set prices. Economists are certain this practice is profitable. b. firms collude to set prices. Economists are skeptical that this practice is profitable. c. A monopolist decreases its prices to maintain its monopoly. Economists are certain this practice is profitable. d. A monopolist decreases its prices to maintain its monopoly. Economists are skeptical that this practice is profitable.
Which of the following statements is correct? In 2014,
a. real income per person in the U.S. was about 4 times that in China. b. real income per person in China was more than 2 times that in India. c. the typical resident of India had less real income than the typical resident of England in 1870. d. All of the above are correct.