Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
A. A true flax tax.
B. A flat sales tax on consumption purchases.
C. A progressive tax on income.
D. A fixed federal tax of $5,000 that everyone pays regardless of income status.
Answer: C
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Gross domestic product is the sum of:
A. the market values of all final goods and services produced within a country in a given period of time. B. the market values of all intermediate goods and services produced within a country in a given period of time. C. all final goods and services produced by a country's citizens in a given period of time. D. the market values of all final goods and services produced by a country's citizens in a given period of time.
The amount of added utility that an individual derives from consuming one more unit of a good or service is called: a. total utility
b. marginal utility. c. average utility. d. diminishing utility.
If a perfectly competitive firm is a price taker, then which of the following is true?
a. Pressure from competing firms will force acceptance of the prevailing market price. b. The firm must be a relatively small player compared to its competitors in the overall market. c. The firm can increase or decrease its output without affecting the overall quantity supplied in the market. d. Quality differences will be very perceptible and will play a major role in purchasers' decisions.
Operations of the Trading Desk of the Federal Reserve Bank of New York are typically conducted
A. no more often than once per month. B. within a one-hour period during each day. C. once a year. D. no more often than once per week.