Taxes can be progressive, regressive, or proportional
What will be an ideal response?
For example, regarding an income tax:
Progressive: As incomes increase, the tax rate increases.
Regressive: As incomes increase, the tax rate decreases
Proportional: All income levels pay the same percentage.
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An economic model is:
a. a plastic scaled version of the economy. b. a complete depiction of reality. c. an abstraction from reality. d. applicable to consumer behavior but not to producer behavior. e. not an accepted tool of the economics profession.
The United States is a member of the fast-growth club of economic convergence, and India is a member of the slow-growth club of economic convergence.
Select whether the statement is true or false. A. True B. False
According to the text, there is no such thing as a free lunch because
A. The producer must charge something to cover the cost of production. B. The government must raise taxes to pay for the lunches. C. No one would pay for lunch anymore if they could get it for free. D. Resources used to produce the lunch could be used to produce other goods and services.
With respect to the aggregate demand curve, improved consumer confidence would
A. Shift the curve leftward. B. Move the economy up along the curve. C. Move the economy down along the curve. D. Shift the curve rightward.