-Refer to Table 12-8

question 24

Multiple Choice

-Refer to Table 12-8.Which tax illustrates a regressive tax

• A)tax A
• B)tax B
• C)tax C
• D)tax D

---

Definitions:

Consumer Price Index

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Real Wages

These are wages adjusted for inflation, representing the purchasing power of the income received by workers for their labor.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Base Year

A reference year against which economic growth, prices, or quantities are measured in index numbers or other economic data series.