Under a _____ structure, the marginal income tax rate rises and the average tax rate decreases as personal income falls
a. value added tax
b. sin tax
c. progressive tax
d. regressive tax
e. lumpsum tax
c
You might also like to view...
As populations age, public spending tends to increase
Indicate whether the statement is true or false
In 2001, women in most occupations earned ________ of what males in the same occupation earned
a. less than 30 percent b. about 50 percent c. about 70 percent d. about 90 percent
The trade barrier that involves levying one tariff rate for a certain amount of an imported commodity and a higher tariff rate for quantities in excess of that amount is the
a. export subsidy. b. import subsidy. c. tariff quota. d. quality standards requirement.
As the economy expands, the collection of personal income tax revenues automatically rises. This relationship best describes how the progressive income tax system:
A. increases crowding out in the economy. B. offsets the timing problem for fiscal policy. C. decreases real interest rates in the economy. D. provides built-in stability for the economy.