You Are Trying to Design a Tax System That Will

question 218

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) two people with the same total income would pay taxes of the same amount, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following tax systems could achieve both goals?

• A)a lump-sum tax
• B)a regressive tax
• C)a progressive tax
• D)a proportional tax

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Definitions:

Psychological Methods

Encompasses the techniques and strategies used in psychology to study the mind and behavior, including experiments, observations, and assessments.

Cognitive-behavioural Techniques

Strategies used in cognitive-behavioural therapy to identify and change negative thought patterns and behaviors to improve mental health and well-being.

Neurotic Behaviour

Patterns of thinking, feeling, or behavior that are generally considered to be out of the norm and exhibit signs of anxiety or depression.

Cardiovascular Reactivity

The degree of change in a cardiovascular function that occurs in response to psychologically significant events.