Beijing Is Notorious for Its Excessive Pollution

question 36

Multiple Choice

Beijing is notorious for its excessive pollution. China's measure of GDP is

• A) not affected by the estimated value of the pollution's harm.
• B) changed by the pollution only when comparing its GDP with Australian GDP.
• C) decreased by the estimated value of the pollution's harm.
• D) increased by the estimated value of the pollution's harm.
• E) None of the above answers is correct.

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Definitions:

Tax Revenues

The income that is collected by governments through taxation.

Progressive Tax

A tax in which the average tax rate rises with income. People with higher incomes will pay a higher percentage of their income in taxes.

Proportional Tax

A tax in which the average tax rate is the same at all income levels. Everyone pays the same percentage of income in taxes.

Regressive Tax

A tax in which the average tax rate falls with income. People with higher incomes will pay a lower percentage of their income in taxes.