A progressive income tax system can be defined as one in which
A. the government uses taxes paid by the wealthy to fund programs for the poor.
B. an individual pays more dollars in taxes when his income rises.
C. the marginal tax rate rises over time.
D. the average tax rate is higher for individuals with higher incomes.
Answer: D
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If Ford sells 200 Explorers for a total of $400,000 to Germany, while the United States imports 100 BMWs for a total of $500,000 from Germany
A) U.S. GDP increases because it sells more Explorers. B) U.S. GDP decreases because net exports are negative. C) Germany's GDP decreases. D) U.S. net exports is positive.
Assume a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, what should it do in the short run?
A) shut down B) continue operating in the short run even though it is losing money C) continue operating because it is earning an economic profit D) Cannot be determined from the above information