A tax is structured so that the tax as a percentage of income declines as the level of income increases is called a(n):
a. flat tax.
b. regressive tax.
c. progressive tax.
d. excise tax.
a
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A country that has a capital account deficit:
A. is a net buyer of assets. B. is importing more goods and services than it exports. C. is a net seller of assets. D. also has a current account deficit.
Suppose a monopoly's inverse demand curve is P = 100 -Q, it produces a product with a constant marginal cost of 20, and it has no fixed costs. How much more or less is the deadweight loss if the monopoly can practice perfect price discrimination compared to it practicing uniform pricing?
A) The deadweight loss is smaller by 800. B) The deadweight loss is greater by 800. C) The deadweight loss is smaller by 1600. D) The deadweight loss is greater by 1600.
Which of the following describes a situation in which a good or service is produced at the lowest possible? cost?
A) marginal efficiency B) productive efficiency C) allocative efficiency D) profit maximization
Failure of market outcomes occurs when:
A. there are no market failures but the market is not achieving society's goals. B. there are market failures such as externalities. C. the market outcome is not Pareto optimal. D. the market outcome is not efficient.