The Supply Curve of a Good Slopes Upward to the Right

question 42

Multiple Choice

The supply curve of a good slopes upward to the right because of

• A)technological improvements over time.
• B)the law of supply.
• C)the law of demand.
• D)the existence of substitutes in production.
• E)the fact that prices tend to rise over time.

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Definitions:

Progressive Tax

A taxation system where the tax rate increases as the taxable amount or income of the individual or entity increases.

Benefits-Received Principle

A taxation theory stating that individuals should pay taxes in proportion to the benefits they receive from government services.

Gasoline Tax

A levy imposed by governments on the sale of gasoline, often used to fund transportation infrastructure and environmental initiatives.

Corporate Income Tax

A tax on the profit of a corporation, where the tax rates can vary based on a country's tax laws and the company's income levels.