Which of the Following Statements Suggests That Property Taxes Might

question 94

Multiple Choice

Which of the following statements suggests that property taxes might be progressive?

• A)Higher- income people live in more expensive houses than do low- income people.
• B)The proportion of income spent on housing tends to decline as income rises.
• C)A large part of the property tax is shifted to renters,who typically have lower incomes than owners.
• D)Inner city neighbourhoods often have higher property taxes than do the more affluent suburbs.
• E)Elderly pensioners often live in their family homes after children have left.

---

Definitions:

Utility Function

Refers to the model used by economists to estimate the level of utility or satisfaction a consumer derives from the consumption of goods and services, highlighting consumer preferences.

Budget Constraint

A representation of all the combinations of goods and services a consumer can purchase with their income at given prices.

Income

The financial earnings received by an individual or a business in exchange for their labor, services, or investments, typically measured over a certain period.

Apples

A type of fruit that is grown worldwide and comes in various colors and flavors, often eaten raw or used in dishes.