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.


Answer: A

Economics

You might also like to view...

For several years, the U.S. unemployment rate has been below the European unemployment rate. Offer a Keynesian explanation for this

What will be an ideal response?

Economics

Describe the difference between technology and positive technological change

What will be an ideal response?

Economics

If preferences exhibit the property of transitivity, then

a. the preferences are irrational. b. individuals prefer more government involvement in private markets than do people whose preferences are not transitive. c. preferences change over time more quickly than when preferences are not transitive. d. preferences satisfy one of the properties assumed to be desirable by Kenneth Arrow in Social Choice and Individual Values.

Economics

A firm should shut down production when

A. P = minimum ATC. B. P > minimum AVC. C. P = MC. D. P < minimum AVC.

Economics