Suppose that in the economy of Springfield, USA, Homer, who has an income of $50,000, pays $10,000 in taxes. Edna, who has an income of $35,000, pays $9,000 in taxes. Based on this information, we could say that Springfield's tax system is
A) proportional.
B) progressive.
C) regressive.
D) flat.
C
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As defined by economists, interest is
a. only the amount earned by productive capital as a resource b. only the amount earned by land as a resource c. only the amount earned by lending money d. both the amount earned by productive capital as a resource and the amount earned by lending money e. both the amount earned by land as a resource and the amount earned by lending money
A perfectly competitive firm spends a significant part of its revenue on advertisements, and tries to sell more by reducing its price below the market price
a. True b. False Indicate whether the statement is true or false
Net domestic product is the total value of
A) all final goods and services produced within a country's borders in a year. B) only intermediate goods produced within a country's borders in a year. C) all final goods and services produced within a country's borders in a year minus gross private domestic investment. D) only intermediate goods produced within a country's borders in a year plus gross private domestic investment. E) all final goods and services produced within a country's borders in a year minus capital consumption allowance.
The fallacy of composition deals with problems associated with ______.
a. aggregation b. causation c. correlation d. scarcity