Table 18-7 Table 18-7 Shows the Amount of Taxes Paid on Various

question 35

Multiple Choice

Table 18-7

Table 18-7 shows the amount of taxes paid on various levels of income.
-Refer to Table 18-7.The tax system is

• A)progressive throughout all levels of income.
• B)proportional throughout all levels of income.
• C)regressive throughout all levels of income.
• D)progressive between $10,000 and $12,000 of income and regressive between $16,000 and $22,000.

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Definitions:

Output

The aggregate output of products or services generated by a corporation, sector, or economic system.

Price-Taker Market

A market in which sellers have no ability to influence the price of the goods or services they sell; price is determined by supply and demand.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.

Marginal Revenue

The additional income received from selling one more unit of a good or service.