A Progressive Tax

question 19

Multiple Choice

A progressive tax:

• A)​is designed to take a larger percentage of higher incomes as compared to lower incomes.
• B)​takes a greater proportion of the income of lower-income groups than of higher-income groups.
• C)​is designed so that everybody would be charged the same percentage of their income.
• D)​is designed to take a smaller percentage of higher incomes as compared to lower incomes.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, inventories, and meeting other short-term liabilities.

Long-Term Investment

Financial assets or securities that are held for an extended period, typically for several years or more, with the expectation of substantial returns.