a. A progressive tax is one in which the average tax rate is constant as income increases. O the average tax rate decreases as income increases. O the same amount of taxes are paid as income increases. O the average tax rate increases as income increases. b. A regressive tax is one in which O the average tax rate increases as income increases. O the average tax rate is constant as income increases. the average tax rate decreases as income increases. O the same amount of taxes are paid as income increases. C. A proportional tax is one in which O the same amount of taxes are paid as income increases. O the average tax rate decreases as income increases. O the average tax rate is constant as income increases. O the average tax rate increases as income increases.
a. A progressive tax is one in which the average tax rate is constant as income increases. O the average tax rate decreases as income increases. O the same amount of taxes are paid as income increases. O the average tax rate increases as income increases. b. A regressive tax is one in which O the average tax rate increases as income increases. O the average tax rate is constant as income increases. the average tax rate decreases as income increases. O the same amount of taxes are paid as income increases. C. A proportional tax is one in which O the same amount of taxes are paid as income increases. O the average tax rate decreases as income increases. O the average tax rate is constant as income increases. O the average tax rate increases as income increases.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:a. A progressive tax is one in which
O the average tax rate is constant as income increases.
O the average tax rate decreases as income increases.
O the same amount of taxes are paid as income increases.
O the average tax rate increases as income increases.
b. A regressive tax is one in which
O the average tax rate increases as income increases.
O the average tax rate is constant as income increases.
the average tax rate decreases as income increases.
the same amount of taxes are paid as income increases.
C. A proportional tax is one in which
O the same amount of taxes are paid as income increases.
O the average tax rate decreases as income increases.
the average tax rate is constant as income increases.
O the average tax rate increases as income increases.
cO where You thin

Transcribed Image Text:g. A municipal property tax on real estate is
O regressive, and the incident is on the consumer if the property is used in business.
O average, and the incident is on the consumer if one owns or rents.
O progressive, and the incident is on the taxpayer if the property is rented.
O proportional, and the incident is on the consumer if it is an owner-occupied residence or land.
h. The federal corporate income tax is
proportional, if the incidence is on shareholders.
O average, if the incidence is on shareholders.
O progressive, if the incidence is on consumers.
O regressive, if the incidence is on producers.
i. The portion of the payroll tax levied on employers is
O regressive, if the incidence is on employees.
O difficult to determine without knowing the relative labor supply and demand elasticities.
O progressive, if the incidence is on employers.
O proportional, if the incidence is on employers.
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In an economy, government imposes different type sof taxes according to the needs of the market and for maximizing the social welfare.
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