Suppose an income tax is imposed that takes $1,000 from someone with an income of $20,000; $4,000 from someone with an income of $30,000; and $12,000 from someone with an income of $80,000. This tax would be classified as
A. a flat tax.
B. proportional.
C. regressive.
D. progressive.
Answer: D
You might also like to view...
The above table gives Sue's marginal utility schedules for sub sandwiches and Mountain Dew, the only products Sue consumes. Suppose the price of a sub sandwich is $4 each and the price of a Mountain Dew is $2 each. Sue's income is $12
If Sue is at a consumer equilibrium, she eats ________ sub sandwich(es) and drinks ________ Mountain Dews. A) 0; 6 B) 1; 4 C) 2; 2 D) 3; 0
Subsidies can destroy wealth because
a. subsidies move assets from lower- to higher- valued uses b. subsidies move assets from higher- to lower- valued uses c. subsidies help producers only d. subsidies help consumers only
The Federal Reserve can increase the money supply by:
A. increasing the discount rate. B. conducting open market sales. C. reducing reserve requirements. D. eliminating deposit insurance.
Classical economists believed that the economy automatically moves toward equilibrium at full employment
a. True b. False Indicate whether the statement is true or false