Which of the Following Statements Is Correct

question 132

Multiple Choice

Which of the following statements is correct?

• A)A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers.
• B)A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers.
• C)A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers.
• D)A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.

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Definitions:

Demand Curve

A chart that illustrates how the demand for a product varies with its price.

Marginal Cost

The incremental expenditure incurred from manufacturing an additional unit of a product or service.

Mineral Water

Water containing minerals or other dissolved substances that alter its taste or give it therapeutic value, often sourced from a well or spring.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market without any close substitutes, dominating the market.