Suppose That Anthony and Melissa Both Earn $30,000 and Are

question 24

Multiple Choice

Suppose that Anthony and Melissa both earn $30,000 and are otherwise the same.If they both pay 10 percent of their income as taxes,then

• A) the income tax is regressive.
• B) the benefits principle of fairness has been achieved.
• C) horizontal equity has been achieved.
• D) proportional equity has been achieved.
• E) vertical equity has been achieved.

---

Definitions:

Socially Optimal Level

An economic condition where resources are allocated in the most efficient way from the society's point of view, maximizing welfare or net social benefit.

Club Good

A Club Good is a type of good that is excludable but not rival in consumption, meaning access can be limited to paying members, but one member's use does not diminish availability to others.

Occupational Safety

The discipline focused on ensuring safe and healthy working conditions for employees by enforcing standards and providing training to reduce workplace accidents and illnesses.

Hazardous Chemical

A chemical substance that poses a potential risk to health, safety, or the environment.