Advocates of a Progressive Income Tax Use Arguments EXCEPT for Which

question 91

Multiple Choice

Advocates of a progressive income tax use arguments EXCEPT for which of the following?

• A) A progressive tax system taxes according to ability to pay.
• B) A progressive tax system taxes according to benefits received.
• C) A progressive tax system helps redistribute income away from the rich and towards the poor.
• D) A progressive tax system maximizes government revenues.

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Definitions:

Hindsight Bias

The tendency to overestimate one’s ability to have predicted an event after the outcome is known; the “I knew it all along” phenomenon.

Heuristic

A rule of thumb that suggests a course of action or guides problem solving but does not guarantee an optimal solution.

Cognitive Schema

A mental framework that helps organize and interpret information, based on past experiences and knowledge.

Cognitive Heuristic

Simple, efficient rules which people often use to form judgments and make decisions; they are mental shortcuts that reduce the cognitive load of making a decision.