When the Tax Structure of a Nation Is Progressive, as Incomes

question 33

Multiple Choice

When the tax structure of a nation is progressive, as incomes increase, the tax rate:

• A) declines.
• B) remains the same.
• C) increases.
• D) is proportional.

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Definitions:

Increase in Supply

A situation where the quantity of a good or service that producers are willing to supply at a given price rises.

Increase in Demand

A situation where consumers are willing and able to purchase more of a good or service at each possible price, often depicted by a rightward shift in the demand curve.

Decrease

A reduction in size, number, value, or extent.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market balance.