If a tax is progressive, the average tax rate
a. remains the same as income rises.
b. rises as income rises.
c. falls as income rises.
d. falls with passage of time.
b
You might also like to view...
Suppose that a technological decline makes labor less productive. What is likely to happen to wages and to potential output?
A) Wages decrease and potential output increases. B) Wages increase and potential output decreases. C) Wages increase and potential output increases. D) Wages decrease and potential output decreases.
An increase in the real interest rate ________ the quantity of loanable funds supplied and ________ the quantity of loanable funds demanded
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Four years after graduating from college you must decide if you want to go on as an accountant (your college major) or if you want to make a career change and become a singer. The cost of your education will matter for your decision
Indicate whether the statement is true or false
According to the income approach, the largest component of national income is:
a. government spending. b. proprietor's income. c. net interest. d. personal consumption expenditures. e. compensation of employees.