Which of the Following Would Indicate That a Tax Is

question 99

Multiple Choice

Which of the following would indicate that a tax is regressive?

• A)High-income people pay $5, 000; low-income people pay $2, 000.
• B)High-income and low-income people pay $200 each.
• C)High-income people pay 20 percent of their income in taxes; low-income people pay 10 percent.
• D)Both high-income and low-income people pay 10 percent of their income in taxes.
• E)Low-income people are exempt from the tax.

---

Definitions:

Equity

Ownership interest in a corporation in the form of common stock or preferred stock, representing a claim on its earnings and assets.

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense, or the use of resources so as to maximize the production of goods and services.

Military Establishment

This refers to the structures, institutions, and personnel that constitute a country's armed forces and defense infrastructure.

Mikhail Gorbachev

The last leader of the Soviet Union, serving from 1985 to 1991, known for his policies of glasnost (openness) and perestroika (restructuring).