The Table Given Below Shows the Absolute Tax Amounts Under

question 40

Multiple Choice

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-"Most textiles worn by American consumers are produced in Asian and South American countries where the opportunity costs of production are lower." This observation refers to the:

• A)law of supply.
• B)income elasticity of demand.
• C)principle of beneficial tariffs.
• D)principle of comparative advantage.
• E)law of decreasing returns to scale.

---

Definitions:

Market System

An economic system where decisions about production, investment, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Command-and-control

A type of regulation where the government sets specific limits for pollution emissions and may also mandate specific pollution control technologies.

Incentive-based Regulations

Regulatory methods designed to encourage businesses to improve their environmental performance through rewards or penalties.

Political Suicide

Actions or decisions by a politician that are likely to seriously harm their own career or reputation.