Scenario: There Are 4 Households in a Locality

question 143

Multiple Choice

Scenario: There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second household is $47,000, the annual income of the third household is $50,000, and the annual income of the fourth household is $71,000.
-Refer to the scenario above.If the fourth household pays the lowest percentage of its income in tax,it can be inferred that the government follows a ________ tax system.

• A) progressive
• B) proportional
• C) Pigouvian
• D) regressive

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