Which of the Following Is an Example of a Progressive

question 46

Multiple Choice

Which of the following is an example of a progressive tax?

• A)Social Security payroll tax.
• B)A local sales tax.
• C)The federal income tax.
• D)An excise tax.

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Definitions:

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be positive or negative.

Pollution Abatement

Measures and processes undertaken to reduce, control, or eliminate pollution from various sources.

Optimal Amount

The quantity of a good or service that yields the highest utility or benefits under specific conditions.

Moral Hazard

A situation in economics where one party is more likely to take risks because another party bears the costs of those risks.