If a Tax Takes a Constant Fraction of Income as Income

question 361

Multiple Choice

If a tax takes a constant fraction of income as income rises, it is

• A)regressive.
• B)proportional.
• C)progressive.
• D)based on the ability-to-pay principle.

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Definitions:

Primary Objective

The main goal or purpose that an organization or individual aims to achieve.

High\Low Pricing

A retail strategy that involves alternating between high prices and discount sales to attract customers while maximizing profit margins.

Promotion of Sales

Activities and strategies to increase consumer awareness and sales of a product or service, often temporary to stimulate demand.

Competitor Orientation

A company objective based on the premise that the firm should measure itself primarily against its competition.