Taxes Are Generally Classified into Three Categories

question 144

Multiple Choice

Taxes are generally classified into three categories:

• A)progressive, regressive, and lump-sum.
• B)progressive, regressive, and proportional.
• C)proportional, flat tax, and gradual.
• D)gradual, proportional, and progressive.

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Definitions:

Government-Mandated

Regulations or requirements imposed by governmental bodies that must be followed by individuals, businesses, or other organizations.

Demand Curves

A graphical representation showing how the quantity demanded of a good or service varies with its price.

Supply Curves

A graphical representation of the relationship between the price of a good and the quantity of the good supplied by producers.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, when capital goods are distributed in the most beneficial manner among the population.