With a lump-sum tax,the average tax rate for high income taxpayers will be
a. the same as the average tax rate for low income taxpayers.
b. lower than the average tax rate for low income taxpayers.
c. higher than the average tax rate for high income taxpayers.
d. Any of the above could be true under a regressive tax system.
b
You might also like to view...
The multiplier effect tends to
A. decrease upswings and downswings in business activity. B. promote stability of the general price level. C. magnify small changes in spending into much larger changes in output and income. D. reduce the MPC.
(Consider This) Which of the following nations has implemented policies that pay women to have additional children?
A. Russia. B. France. C. Italy. D. All of these nations.
If the economy is operating in the relatively steep (upper) portion of its aggregate supply curve, a reduction in the money supply will:
A. increase the interest rate and increase employment. B. reduce the interest rate and increase employment. C. increase the interest rate and reduce the price level, assuming it is flexible downward. D. reduce the interest rate and increase the price level.
In the above figure, for a single-price monopoly the consumer surplus is equal to the area
A) abP1. B) acP2. C) bce. D) bed. E) cQ20P2.