Explain how taxes are levied in a progressive income tax system and the rationale for choosing a progressive income tax structure
Wealthy people pay a larger percentage of their income to the government in taxes than poor people pay. A
progressive income tax structure is based on the argument that poor people suffer more from paying a given
percentage of their incomes to the government than wealthy people do when paying the same percentage of
their (larger) incomes. This argument arises from the idea that it is possible to make interpersonal
comparisons of burden.
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In the short run, why does a production function eventually display diminishing returns to labor?
A) As a firm hires more workers the skills and the work ethic of the additional workers will eventually decline. B) The opportunity cost of hiring additional workers must eventually rise. C) As the number of workers increases eventually the gains from the division of labor and specialization are used up. D) As the number of workers increases it becomes difficult to monitor them.
Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist?
A) 14 B) 19 C) 25 D) 30
For a perfectly competitive firm, the long-run supply curve is its long-run marginal cost curve.
Answer the following statement true (T) or false (F)
Straight line pay for performance
a. Eliminates the managers' incentives to lie about the budget b. Breaks the link between meeting a particular budget goal and compensation c. Rewards the manager for doing more and punishes them for doing less d. All of the above