A Progressive Tax

question 82

Multiple Choice

A progressive tax

• A) is one that taxes those with higher incomes at a higher rate than those with lower incomes.
• B) takes a similar percentage in the form of taxes from those with higher incomes as it does from those with lower incomes.
• C) takes a higher percentage of income in the form of taxes from those with lower incomes than from those with higher incomes.
• D) is any tax in which the dollar amount of taxes paid increases with income.

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Definitions:

Preventive Maintenance

Routine maintenance and servicing of equipment to prevent unexpected breakdowns and failures.

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal maintenance, for the purpose it was acquired or constructed.

Economic Value

The measurement of the benefit provided by a good or service to an economic agent.

Value-based Pricing

A pricing strategy where the price is set based on the perceived or estimated value of a product or service to the customer rather than on the cost of production.