During the Quarter of a Century Prior to 2000, Between

question 125

Multiple Choice

During the quarter of a century prior to 2000, between 66 percent and 71 percent of Americans age 18 and older paid personal income taxes. What happened to the share of adult Americans with a personal income tax liability between 2000 and 2009?

• A) It rose to nearly 90 percent.
• B) It rose to approximately 80 percent.
• C) It was virtually constant at approximately 70 percent.
• D) It fell to 51 percent.

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Definitions:

Negative

A term indicating something less than zero or lacking in positivity, often used in financial contexts.

Income Elasticities

Income elasticities measure how the quantity demanded of a good changes in response to a change in consumers' income.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.

Inferior Goods

Goods for which demand decreases as consumer income rises, in contrast to normal goods, where demand increases with higher incomes.