A progressive income tax is one that
A) taxes income so that the average tax rate decreases with the level of income.
B) taxes all income above the guaranteed minimum at an average rate that decreases with income.
C) taxes income so that the average tax rate increases with the level of income.
D) taxes income at a constant rate, regardless of the level of income.
C
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Refer to the diagrams that show identical marginal utility from income curves for Singer and Catalano. The marginal utility from income curves are drawn on the assumption that:
A. Singer buys more inferior goods than does Catalano.
B. Singer and Catalano have identical capacities to enjoy income.
C. Catalano has a greater capacity to enjoy income than does Singer.
D. Singer has a greater capacity to enjoy income than does Catalano.
An industry which has a 4-firm concentration ratio near 0 would best be described as
A. oligopoly. B. monopoly. C. perfect competition. D. monopolistic competition.