A Tax Is Regressive If It

question 228

Multiple Choice

A tax is regressive if it

• A)takes a higher percentage of income as income increases.
• B)takes the same percentage of income regardless of income level.
• C)takes a smaller percentage of income as income increases.
• D)is levied on consumers.

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market involves variations in quality, features, or design.

Incentives

Motivators or rewards designed to encourage specific actions or behaviors by individuals or organizations.

Alternatives

Different options or choices available in a given situation, offering different pathways to achieve an objective.

Subsidized

Financial support provided by a government or organization to reduce the cost of producing goods or services.