A family that earns $20,000 a year pays $400 a year in taxes on clothing. A family that earns $40,000 a year pays $200 a year in taxes on clothing. The tax on clothing is
A. a progressive tax.
B. a regressive tax.
C. a proportional tax.
D. a benefits-received tax.
Answer: B
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Producers' total revenue will decrease if
A) income increases and the good is a normal good. B) the price rises and demand is elastic. C) the price rises and demand is inelastic. D) income falls and the good is an inferior good.
If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is
A) 0 percent. B) 5 percent. C) 10 percent. D) 20 percent.
A negative income tax system was designed to
a. provide in-kind benefits to the poor b. provide minimal income to the poor c. reduce taxes on the rich when their incomes surpass the maximum income tax bracket d. create income payments to the poor specifically for medical assistance e. allow people to challenge the tax rate they are currently paying
Relative to a single price monopolist, a price discriminating monopolist generates:
A. less total surplus. B. more total surplus. C. the same amount of total surplus, but less consumer surplus and more producer surplus. D. the same amount of total surplus, but more consumer surplus and less producer surplus.