Describe the Differences Between a Progressive Tax, a Regressive Tax

question 49

Essay

Describe the differences between a progressive tax, a regressive tax, and a flat tax. Provide examples of each, and explain how individuals or groups are affected by each of these taxing formats.

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Definitions:

Perfectly Competitive

Refers to a market structure where many firms sell an identical product, and no single firm can influence the market price due to its small market share.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Short Run

A period in economics during which some factors of production are fixed, making it impossible to change the level of output quickly.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.