You Are Trying to Design a Tax System That Will

question 235

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?

• A)A lump-sum tax would achieve the second goal but not the first.
• B)A regressive tax would achieve the second goal but not the first.
• C)A progressive tax could achieve both goals.
• D)A proportional tax could achieve the second goal but not the first.

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Definitions:

Gene Influence

The effect that genes have on the phenotype of an organism, determining physical and sometimes behavioral traits.

Population Differences

Population differences refer to the variations in genetic, cultural, or physical traits observed between distinct groups of the same species.

Local Dialect

Variations in language specific to a particular region or community, encompassing differences in vocabulary, pronunciation, and grammar.

Adaptive Value

The degree to which a characteristic or action enhances an organism's ability to survive and reproduce in a given environment.