Figure 7-7



In Figure 7-7 at 100 units, AVC equals



a.

8.



b.

800.



c.

100.



d.

1,000.

a

Economics

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A progressive tax means the percentage of income paid as taxes:

a. increases as income increases. b. decreases as income increases. c. remains the same as income increases. d. none of these.

Economics

Suppose that in the economy of Idaho, Amy earns an income of $50,000 a year and pays $10,000 in income taxes; Bailey earns an income of $25,000 a year and pays $8,000 in income taxes. Based on this information, we could say that Idaho's tax system is

A. progressive. B. regressive. C. flat. D. proportional.

Economics