In the Following Situation, the Tax System Is

question 16

Multiple Choice

In the following situation, the tax system is

• A) progressive throughout all levels of income
• B) progressive between $1,000 and $2,000 of income but regressive above $2,000
• C) regressive throughout all levels of income
• D) regressive between $1,000 and $2,000 of income but progressive above $2,000
• E) proportional throughout all levels of income

---

Definitions:

Tariffs

Taxes imposed by a government on imported or occasionally exported goods, often used to protect domestic industries from foreign competition.

Agricultural Act of 2014

A comprehensive statute that governs United States federal farm programs including crop insurance, conservation programs, and nutritional assistance.

Freedom to Farm Act

U.S. legislation passed in 1996 that aimed to reduce government control over farming operations and allow farmers more freedom in their planting decisions.

Countercyclical Payments

Government payments made to farmers and businesses to provide financial support during periods of economic downturn.