Jamal earns $160,000 per year and Josephina earns $80,000 per year. They both pay the same price to buy the identical automobile and each pays $1,600 in sales tax. In relation to their relative incomes, this is an example of a
A) regressive tax.
B) progressive tax.
C) proportional tax.
D) marginal tax.
A
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The short-run industry supply curve is found by
A) taking the inverse of the industry demand curve. B) horizontally summing the average total cost curve of all firms in the industry. C) adding up the quantities supplied at each price by each firm in the industry. D) adding up the quantities supplied at each price by each of the firms in the industry that are making a profit.
If a customs union includes the lowest-cost world producer of a product, then member countries:
a. will always be better off in trade with that product. b. will always be worse off in trade with that product. c. can be better off or worse off depending on the strengths of the trade diversion and trade creation effects for that product. d. will no longer export or import that product.
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process:Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00 What is the value added of The Corner Store?
A. $2.00 B. $1.75 C. $2.50 D. $0.50
Saving is a basic source of investment financing.
Answer the following statement true (T) or false (F)