The Mythical Country of Traviola Imposes a Tax Based on the Number

question 145

Multiple Choice

The mythical country of Traviola imposes a tax based on the number of gold Tokens each taxpayer owns at the end of each year per the following schedule:


$\begin{array}{cc}\hline \text { Number of Tokens } & \text { Tax } \\\hline 0-200 & \$ 100+\$ 5 \text { per Token } \\201-500 & \$ 1,000+\$ 6 \text { per Token } \\>500 & \$ 4,000+\$ 7 \text { per Token }\\\hline \end{array}$
Traviola's Token tax is a

• A)proportional tax.
• B)regressive tax.
• C)progressive tax.
• D)value-added tax.

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Definitions:

Security Interest

A legal claim or right granted over property to secure the payment of a debt or obligation.

Financing Statement

A document that lists the names and addresses of all the parties involved in the transaction, a description of the collateral, and the signature of the debtor.

Federal Trade Commission

A United States federal agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.

Secured Party's Interest

refers to the legal claim or right a lender holds in the borrower's collateral in case the borrower defaults on the loan.