You Are Trying to Design a Tax System That Will

question 235

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?

• A)A lump-sum tax would achieve the second goal but not the first.
• B)A regressive tax would achieve the second goal but not the first.
• C)A progressive tax could achieve both goals.
• D)A proportional tax could achieve the second goal but not the first.

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Definitions:

Body Contact

Physical interaction or touch between individuals, which can influence emotional and physical health.

Artificial Mothers

Constructs used in psychological experiments to study attachment behaviors, often seen in studies involving infant animals such as monkeys.

Critical Period

A specific time during development when the presence or absence of certain experiences can have profound and lasting effects on an individual.

Basic Trust

An essential belief in the reliability and predictability of the world, usually developed in early childhood.