In Which of the Following Tax Systems Do Taxes Increase

question 239

Multiple Choice

In which of the following tax systems do taxes increase as income increases?

• A)both proportional and progressive
• B)proportional but not progressive
• C)progressive but not proportional
• D)neither proportional nor progressive

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Definitions:

Units Of Good

The quantifiable measure of a product or service that is produced by a company.

Utility Function

An expression that quantitatively describes how consumer preferences are ordered, indicating the level of happiness or fulfillment they derive from various goods or services.

Indifference Curves

Graphical representations used in microeconomics to illustrate different combinations of two goods among which a consumer is indifferent in terms of utility or satisfaction.

Preferences Convex

A characteristic of consumer choices where combinations of goods are preferred over extreme options, illustrating a desire for variety.