Describe the properties of a progressive tax and illustrate with an example
What will be an ideal response?
A progressive tax is one in which the burden, expressed as a percentage of income, increases as income increases. A tax that exacts a higher proportion of income from higher-income households than from lower-income households is a progressive tax.
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In the above figure, what quantity will a single-price monopolist produce?
A) Q1 B) Q2 C) Q3 D) Q4
Ceteris paribus, in the short run following a decrease in the rate of growth in aggregate demand, we would expect to see an increase in the rate of unemployment and a decrease in the rate of inflation
Indicate whether the statement is true or false
A prediction based on rational expectations ________
A) relies solely on past experience B) will always be superior to one based on adaptive expectations C) is based on real, rather than nominal variables D) will not always be accurate
Executives should
A) spend an additional dollar on an activity if consumers value it by more than a dollar. B) do more of something if marginal revenue is positive. C) pend an additional dollar on an activity if consumers value it by less than a dollar. D) do more of something if average revenue is greater than zero.