If Jenny's Taxes Are $10,000 When She Earns $50,000 and $12,000

question 60

Multiple Choice

If Jenny's taxes are $10,000 when she earns $50,000 and $12,000 when she earns $60,000, then

• A)Jenny faces a progressive tax.
• B)Jenny faces a regressive tax.
• C)Jenny faces a proportional tax.
• D)Jenny faces a rising marginal tax rate.

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Definitions:

Technical Substitution

The process of replacing one set of inputs or technologies with another to produce the same amount of output, often for efficiency improvements.

Isoquant

A curve representing all combinations of inputs that produce the same level of output in the production process, analogous to an indifference curve in consumption.

Inputs

Resources used in the production process to create goods and services, including labor, materials, and capital.

Total Output

The total quantity of goods or services produced by a firm or economy over a specific period.