Suppose Jill has earned more income this year as compared to what she did last year. Her income tax has also increased. Does it necessarily mean that the income tax system is progressive? Explain
What will be an ideal response?
No, the amount of income tax can increase as income increases in any of the three tax systems (regressive, progressive, and proportional). However, in a progressive tax system, the tax rate (not the tax amount) increases as income increases.
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The reason long run market supply curves are shallower than short run market supply curves is because individual firm supply curves are shallower in the long run than in the short run.
Answer the following statement true (T) or false (F)
To the extent that the value of money is less predictable, it becomes
A) more acceptable as a store of value.
B) less acceptable as a medium of exchange.
C) more acceptable as a standard of deferred payment.
D) more acceptable as a unit of account.