The ______ Indicates the Percentage of Each Additional Dollar of Income

question 223

Multiple Choice

The ______ indicates the percentage of each additional dollar of income that goes into taxes.

• A) ability-to-pay
• B) proportional tax rate
• C) progressive tax rate
• D) marginal tax rate
• E) tax incidence

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Definitions:

Work More

The concept or action of increasing the amount of effort or hours spent on labor or tasks.

New Classical Economists

Economists who advocate for the theory that markets are clear and that prices, wages, and rates adjust quickly to equilibrate supply and demand.

Government Intervention

Actions taken by the government to influence economic activity and market outcomes, such as regulation, subsidies, and taxation.

Monetarists

Economists who believe that the variations in the money supply have major influences on national output in the short run and the price level over longer periods.