You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?
a. A lump-sum tax would achieve the second goal but not the first.
b. A regressive tax would achieve the second goal but not the first.
c. A progressive tax could achieve both goals.
d. A proportional tax could achieve the second goal but not the first.
c
Economics
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A worker pays a tax for Social Security at a constant rate up until a certain level of income is reached. Beyond that income level, no more Social Security tax is paid. The Social Security tax is an example of a
A) progressive tax. B) regressive tax. C) proportional tax. D) sales tax.
Economics
The addition of gasoline pumps at a grocery store is a good example of a network externality
Indicate whether the statement is true or false
Economics