A Tax Is Regressive If It Collects A

question 12

Multiple Choice

A tax is regressive if it collects a:

• A) larger amount as income rises.
• B) constant amount as income rises.
• C) smaller fraction of income as income falls.
• D) smaller fraction of income as income rises.

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Definitions:

State Statutes

Laws established by legislative bodies at the state level in the United States, governing various aspects of daily life and business operations.

Directors

Individuals appointed or elected to oversee the management of a company and make key decisions.

Instrument

A formal legal document that represents a right or interest, such as a check, promissory note, or bond.

Credit

The ability to obtain goods or services before payment, based on the trust that payment will be made in the future.