Table 18-5 Table 18-5 Shows the Amount of Taxes Paid on Various

question 6

Multiple Choice

Table 18-5

Table 18-5 shows the amount of taxes paid on various levels of income.
-Refer to Table 18-5.The tax system is

• A)progressive throughout all levels of income.
• B)proportional throughout all levels of income.
• C)regressive throughout all levels of income.
• D)regressive between $20,000 and $25,000 of income and progressive between $32,000 and $42,000.

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Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a product, the satisfaction (utility) gained from each additional unit decreases.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs.