An income tax system where higher tax rates are applied to increased amounts of income is called a:

The figure above shows that the government provides a subsidy to the farmers of ________ million

A) $350 B) $1,050 C) $50 D) $100 E) $700

Because taxes distort incentives, they typically result in

a. deadweight losses. b. reductions in consumer surplus. c. reductions in producer surplus. d. All of the above are correct.