A Nation Shifts from a Very Progressive Tax System (With

question 10

Multiple Choice

A nation shifts from a very progressive tax system (with a higher tax rate on higher incomes) to a tax system that tax all wages at the same rate. Both systems collect about the same revenues. This shift is likely to

• A) decrease the fraction of the population getting more education.
• B) increase the fraction of the population getting more education.
• C) have no effect on the fraction of the population getting more education.
• D) increase the fraction of the population wanting to work long hours.

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