If a tax takes a constant fraction of income as income rises, it is
a. regressive.
b. proportional.
c. progressive.
d. based on the ability-to-pay principle.
b
You might also like to view...
Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) What part of domestic output in country A is the total wage bill or total wage income before and after the immigration?
A. Area 0fad and area 0gce, respectively
B. Area 0fad and area bced, respectively
C. Area 0gbd and area bced, respectively
D. Area 0gbd and area 0gce, respectively
An increase in the money supply is likely to reduce
A. money demand. B. interest rates. C. the general price level. D. nominal income.
A reduction in world oil supplies is likely to cause
A) an increase in aggregate demand and a decrease in the equilibrium price level. B) a decrease in equilibrium price level and an increase in real Gross Domestic Product (GDP). C) an increase in equilibrium price level and an increase in real Gross Domestic Product (GDP). D) a reduction in aggregate supply, a rise in the equilibrium price level, and a fall in real Gross Domestic Product (GDP).
The greater the MPC is, the ___ the slope of the demand curve.
a. greater b. smaller c. It depends on the trade balance. d. The slope of the demand curve does not depend on this.