Progressive taxes are designed to make higher earners pay ______.
a. a lower percentage but more total taxes than others
b. a higher percentage and more total taxes than others
c. a higher percentage but less total taxes than others
d. the same percentage but more total taxes than others
b. a higher percentage and more total taxes than others
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Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit
Indicate whether the statement is true or false
Refer to Figure 28-3. The shifts shown in the short-run and long-run Phillips curves between period 1 and period 2 could be explained by
A) either an increase in expected inflation from 4.0 to 5.5 percent or an increase in the natural rate of unemployment from 5.5 to 6.8 percent. B) an increase in the expected inflation rate from 4.0 to 5.5 percent. C) an increase in the natural rate of unemployment from 5.5 to 6.8 percent. D) None of the above is correct.
The idea that the public interest should be equated with those policies that produce the greatest good for the greatest number _____
a. is the utilitarian criterion b. is the Pareto optimality criterion c. is the Hobbesian criterion d. is a value free judgment
A consumer purchases housing (H) and spends the remainder of income on the composite good (C). The government is considering one of two policies. Policy A taxes housing by $50 per unit consumed
With the tax in place, the consumer purchases 100 units of housing. Policy B collects a lump-sum tax of $5,000 from the consumer's income. Compare the effects of the policies on the consumer's utility/well-being and the amount of housing and composite goods purchased.