Suppose That Anthony and Melissa Both Earn $30,000 and Are

question 24

Multiple Choice

Suppose that Anthony and Melissa both earn $30,000 and are otherwise the same.If they both pay 10 percent of their income as taxes,then

• A) the income tax is regressive.
• B) the benefits principle of fairness has been achieved.
• C) horizontal equity has been achieved.
• D) proportional equity has been achieved.
• E) vertical equity has been achieved.

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Definitions:

Cohort Effect

Differences among groups of people caused by their being born in different time periods.

Ethnic Differences

Refers to the diverse characteristics, cultures, languages, and customs that distinguish one ethnic group from another.

Racial Differences

Pertains to the distinctive attributes, characteristics, or social experiences that are associated with identifiable groups of people categorized based on perceived physical attributes or ancestry.

Depression

A mental state disorder where an individual experiences consistent dejection or a reduction in finding pleasure in activities, adversely impacting everyday functionality.