Which of the Following Refers to a Tax That Applies

question 48

Multiple Choice

Which of the following refers to a tax that applies higher tax rates to higher-income households?

• A) Regressive tax.
• B) Flat tax.
• C) Progressive tax.
• D) Sales tax.

---

Definitions:

Lower Prices

A decrease in the cost of goods or services, often resulting in increased demand or consumer purchasing power.

Price Leadership

Strategy where the leading firm in an industry sets the price of goods or services, which other firms in the market then follow or undercut.

Covert Collusion

An indirect or secret agreement among competitors to engage in anti-competitive behaviors, such as price-setting, that is not openly acknowledged or visible to regulatory authorities or the public.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within industries.