Refer to Table 18-8. The tax system is

A) regressive throughout all levels of income.
B) progressive throughout all levels of income.
C) progressive between $10,000 and $12,000 of income and regressive between $12,000 and $22,000.
D) proportional throughout all levels of income.

A

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For a risk-averse individual, as wealth increases, total utility

A) increases at a decreasing rate. B) increases at a constant rate. C) increases at an increasing rate. D) is constant.

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The absolute value of the price elasticity of demand at the midpoint of a linear demand curve is always

a. greater than one b. less than one c. one d. zero e. infinity

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