A Progressive Tax Is One for Which the Percentage of Each

question 130

Multiple Choice

A progressive tax is one for which the percentage of each added dollar of income paid in taxes

• A)increases as income increases.
• B)remains the same as income increases.
• C)decreases as income increases.
• D)is zero after a certain maximum income is reached.

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Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, allowing for full adjustment to change.

Average Total Cost Curve

A graphical representation showing how average cost changes with changes in output.

Zero Economic Profits

A situation in perfect competition where firms earn just enough revenue to cover their total costs, including opportunity costs.

Marginal Revenue

Marginal Revenue is the additional income received from selling one more unit of a product.