You Are Trying to Design a Tax System That Will

question 235

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?

• A)A lump-sum tax would achieve the second goal but not the first.
• B)A regressive tax would achieve the second goal but not the first.
• C)A progressive tax could achieve both goals.
• D)A proportional tax could achieve the second goal but not the first.

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Definitions:

Symbolic

Pertaining to symbols or the use of symbols to represent ideas, concepts, or other things.

Substage 6

Typically refers to a phase within a developmental process or theory, which outlines specific milestones or characteristics unique to that stage.

Sensorimotor Period

A stage in early childhood development characterized by learning through sensory experiences and motor activities.

Representational Thought

The ability to hold mental representations of objects or events that are not physically present, a crucial component of abstract thinking.