Last year you earned $45,000 and paid $9,000 in income taxes. This year you earned $60,000 and paid $15,000 in income taxes. What kind of income tax do you face?
A) regressive
B) progressive
C) proportional
D) traditional
B
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A $0.50 tax levied on the buyers of pomegranate juice will shift the demand curve
A. downward by less than $0.50. B. downward by exactly $0.50. C. upward by exactly $0.50. D. upward by less than $0.50.
Which of the following is a consequence of the voting paradox?
A) The collective preferences of voters are not transitive and voting outcomes are inconsistent. B) Individuals and firms who benefit from government actions engage in rent seeking. C) A majority of voters elect a candidate that does not represent the preferences of the voter who is in the political middle. D) Politicians support small groups of individuals and firms that benefit from special interest legislation, rather than a much larger group of voters who pay the cost for this legislation.