Mr. Thomson has a before-tax income of $20,000 and paid taxes of $2,000 . Ms. Lynch had a before-tax income of $10,000 and paid taxes of $1,500 . Based on this information, which of the following is correct?
a. The tax system is progressive.
b. The tax system is proportional.
c. The tax system is regressive.
d. The tax system is based on the benefits received.
e. There is insufficient information to answer the question.
C
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According to Adam Smith, a well-governed society's wealth is positively related to
A) the division of demand. B) the division of labor. C) the degree to which society can eliminate scarcity. D) the degree to which society can encourage and promote greed.
If the relative price of pizza in terms of movies is 3, this means that
A) the opportunity cost of a pizza is 3 movies. B) 3 pizzas can be traded for 9 movies. C) in terms of the dollars that must be spent to buy the product, pizza is more expensive than movies. D) All of the above answers are correct.