A family that earns $20,000 a year pays $4,000 a year in payroll taxes. A family that earns $40,000 a year pays $8,000 a year in payroll taxes. The payroll tax is a ________ tax.
A. progressive
B. regressive
C. proportional
D. benefits-received
Answer: C
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Unemployment insurance is:
A. offered by companies as a way to affect the level of frictional unemployment. B. offered by the government as a way to affect the level of seasonal unemployment. C. money that is paid by the government to people who are unemployed. D. All of these are true.
Jim enjoys the feeling of wind in his hair enough to ride his motorcycle without a helmet, even though he fully realizes the potential for injury it creates by not wearing one in the unlikely event he is in an accident. To an economist, Jim is
a. making an irrational choice. b. making a rational choice. c. not fully considering the personal costs and benefits of his decision. d. not responding to the incentives he faces.
Which of the following statements is true?
a. The share of income going to labor has increased during periods when union membership has increased as a proportion of the U.S. labor force. b. Inflation in the United States has tended to accelerate as the proportion of the U.S. labor force that is unionized has increased. c. Higher wages in the unionized sectors of an economy will also push up wages in the nonunion sectors. d. High real wages cannot be achieved and sustained without increases in output per worker hour.
The United States ranks higher than Israel and Egypt on the 2017 Index of Economic Freedom.
Indicate whether the statement is true or false.