Consider a System in Which a Person Earning $10,000 Pays

question 62

Multiple Choice

Consider a system in which a person earning $10,000 pays $1,000 in taxes, a person earning $25,000 pays $1,000 in taxes, and a person earning $60,000 pays $1,000 in taxes. Identify the correct statement.

• A) This is an example of regressive taxation.
• B) This is an example of proportional taxation.
• C) This is an example of progressive taxation.
• D) This is an example of a tax based on the benefits-received principle.
• E) This is an example of a Pigouvian tax.

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Definitions:

Piaget

A Swiss psychologist famous for his pioneering work in child development, particularly his theory of cognitive development that describes how children construct a mental model of the world.

Middle Childhood

A developmental stage typically ranging from ages 6 to 12, characterized by cognitive, social, and emotional growth, as children enter school and expand their social world.

Perspective-taking Skills

The cognitive capacity to consider a situation or understand a concept from an alternative point of view, including others' thoughts and feelings.

Egocentric

In developmental psychology, a stage where a child is unable to differentiate between their own perspective and that of others, often occurring in early childhood.