Describe the properties of a progressive tax and illustrate with an example
What will be an ideal response?
A progressive tax is one in which the burden, expressed as a percentage of income, increases as income increases. A tax that exacts a higher proportion of income from higher-income households than from lower-income households is a progressive tax.
Economics
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The substitution effect explains why there is a direct relationship between the price of a product and the quantity of the product demanded
Indicate whether the statement is true or false
Economics
Indifference curves for perfect substitutes must be parallel lines with a slope of negative one
Indicate whether the statement is true or false
Economics