A Country Can Achieve Some Combination of Goods Outside Its

question 258

Multiple Choice

A country can achieve some combination of goods outside its production possibilities curve by

• A) idling some of its resources.
• B) specializing and engaging in international trade.
• C) buying the debt (bonds and stocks) of foreign nations.
• D) producing more capital goods and fewer consumer goods.

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Definitions:

Regressive

In taxation, regressive describes a tax that takes a smaller percentage of income as the income increases, often placing more burden on lower-income individuals.

Average Tax Rate

The average tax rate is the percentage of total income paid in taxes, calculated by dividing the total amount of taxes paid by the total income before taxes.

Taxable Income

The portion of an individual's or corporation's income that is subject to income tax after allowances, exemptions, and deductions.

Taxable Income

The portion of an individual's or corporation's income used as a basis to calculate how much they owe in taxes to the government.