Refer to the data. If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, the tax system:
Answer the question on the basis of the following before-tax consumption schedule for a closed economy:
A. is regressive.
B. is proportional.
C. is progressive.
D. may be either proportional or progressive.
A. is regressive.
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In an industry with a large number of firms,
A) each firm will produce a large quantity, relative to market demand. B) one firm will dominate the market. C) collusion is impossible. D) competition is eliminated. E) barriers to exit must exist.
If one is producing well within a production possibilities frontier, they are
A) using resources to the best of their ability. B) using resources at the lowest opportunity cost. C) using resources in an inefficient way. D) using resources in a way that maximizes their comparative advantage.