The more that Clayton earns, the higher is his average tax rate. Clayton faces a ________ income tax
A) regressive
B) proportional
C) progressive
D) flat-rate
C
You might also like to view...
In the classical model, an increase in aggregate demand will lead to an increase in wage rates while a decrease in aggregate demand will
A) change the price of capital. B) leave wages unchanged since workers will not take a cut in pay. C) increase wages since business will be desperate for labor. D) decrease wages.
For the calculation of a Lorenz curve using quintiles, the:
a. first quintile contains the richest 50 percent of population. b. first quintile contains the richest 20 percent of population. c. first quintile contains the poorest 50 percent of population. d. first quintile contains the poorest 20 percent of population. e. last quintile contains the poorest 10 percent of population.
That some firms are engaged in more than one type of business is explained, in some cases, by
a. moral injunctions such as the Golden Rule. b. the existence of charitable organizations. c. government regulations that discourage the internalization of externalities. d. the fact that the internalization of externalities sometimes coincides with the self-interest of the relevant parties.
Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Acme ($/day)$750$800$1,000$1,400$2,000Cost to FirmCo ($/day)$500$750$1,200$2,200$4,000 Suppose the firms are both currently using process A. If the government requires each firm to reduce pollution by 20 percent, then the total cost to society of this policy will be ________ per day.
A. $1,550 B. $950 C. $300 D. $2,350