A Tax Is Progressive If the Tax Payment Is

question 142

Multiple Choice

A tax is progressive if the tax payment is:

• A) a fixed percentage of income.
• B) a lower percentage of income as income rises.
• C) a higher percentage of income as income rises.
• D) a higher percentage of income as income falls.

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Definitions:

Complementary Goods

Products or services that are typically used together, where the demand for one increases the demand for the other.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Maintenance

The routine process of keeping equipment, systems, or infrastructure in working order and preventing its deterioration.

Older-Model Computers

Computers from previous generations that may not have the latest technology or features but are still functional for certain tasks or uses.