Sales and Excise Taxes Tend to Be ___________ Because Low

question 139

Multiple Choice

Sales and excise taxes tend to be ___________ because low income people tend to spend a _________ fraction of their income than high income people.

• A)progressive;larger
• B)regressive;larger
• C)progressive;smaller
• D)regressive;smaller

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Definitions:

Marginal Cost

The amount spent to manufacture one more unit of a product or service.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.

Upsloping

A description for a curve or a line on a graph that shows a positive relationship between two variables, indicating that as one variable increases, the other also increases.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.