If Bob Earns $20,000 Per Year and Sue Earns $100,000

question 112

Multiple Choice

If Bob earns $20,000 per year and Sue earns $100,000 a year,and there is a flat tax of 10 percent imposed,then Bob would pay __________,Sue would pay ___________,and this would be a __________ tax.

• A)$2,000;$10,000;proportional
• B)$2,000;$10,000;progressive
• C)$2,000;$10,000;lump-sum tax
• D)$200;$1,000;flat tax

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Definitions:

Maximin Strategy

A decision rule used in game theory and decision-making to maximize the minimum gain that can be achieved.

Equilibrium

A state in an economy where supply equals demand, leading to a stable price for goods and services.

Advertise

The act of promoting products, services, or ideas through various media channels to influence consumer behavior.

Collusive Outcome

A situation where firms in a market or industry agree, often secretly, to set prices or output levels to the detriment of market competition.