By definition, a progressive tax:
A. Generates greater tax revenues from the poor.
B. Imposes a higher tax rate as income increases.
C. Imposes a lower tax rate as income increases.
D. Implies that the same tax rate is paid at all income levels.
Answer: B. Imposes a higher tax rate as income increases.
You might also like to view...
If a country begins to import more of a commodity, one can normally expect the price of the commodity to
A. remain unchanged in that nation. B. rise and then fall below where it was originally. C. rise in that nation. D. drop in that nation.
A country is said to be experiencing deflation when
A) prices of most goods and services are rising over time. B) prices of most goods and services are falling over time. C) total output is rising over time. D) total output is falling over time.
A major drawback to cost plus fixed fee contracts when compared to fixed fee contracts is _____
a. firms have an incentive to overbid b. the government must monitor the firm's costs c. the government has an incentive to award bids to the worst companies d. there is an adverse selection problem
Antitrust laws attempt to promote competition by controlling
a. market structure only b. market conduct only c. market structure and performance d. market structure and conduct e. market structure, conduct, and performance