State whether property taxes, income taxes, and sales taxes are progressive, regressive, proportional, or none of the above. What about the tax system as a whole?
What will be an ideal response?
Property taxes are not progressive, regressive, or proportional. Property taxes exhibit a U-shaped pattern with respect to income. Income taxes are progressive with respect to income and sales taxes are generally regressive with respect to income. The tax system as a whole is slightly progressive, but for the average taxpayer it is roughly proportional with respect to income.
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The opportunity cost of holding money is the nominal interest rate
Indicate whether the statement is true or false
Why might a police officer not pull over someone speeding two miles over the speed limit?
A) The explicit costs of stopping the driver over are too high. B) The opportunity costs of stopping the driver are too high. C) The opportunity costs of topping he driver are too low. D) The explicit costs of stopping the driver are too low.