The distinctive characteristic of a progressive tax is that the dollars paid in taxes rise as income rises. O True O False

The U.S. income tax is currently O progressive O proportional O regressive O proactive a tax.

Government levied a tax on good A. The less elastic the demand is, the greater or the smaller the tax burden consumers bear? Also, is the after-tax equilibrium quantity the greater or smaller? Consumers’ tax burden: After-tax equilibrium quantity:

7. Within the context of taxation policy, many economists have preferred the use of consumption tax to income tax. Explain.

Assume a state's general sales tax is 6%; this is an example of a _______________ income tax. A. Progressive B. Proportional C. Regressive

The percentage of an increase in income that is taxed is: O a regressive tax. O the marginal tax rate. O the average tax rate. O a flat tax.

Under a proportional or flat tax, X O everyone pays the same dollar amount in income taxes O everyone pays the same tax rate O tax rates are assessed at a constant percentage of government spending O an individual's tax is based on his percentage of income versus total national income Question 4 Which of the following best describes a progressive tax policy? O People with higher incomes will pay more in taxes than people with higher incomes. O People with lower incomes will pay more in taxes than people with higher incomes. O People with higher incomes will pay a higher tax rate than people with lower incomes. O People with lower incomes will pay a higher tax rate than people with higher incomes

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A sales tax levied at the rate $T does not have the same effects on the market's equilibrium as does an excise tax levied at the rate $T .  Select one: a. True b. False

Suppose taxes are related to income as follows: Income Taxes $1,000 $200 $2,000 $350 $3,000 $450 a. What percentage of income is paid in taxes at each level? b. Is the tax rate progressive, proportional, or regressive? c. What is the marginal tax rate on the first $1,000 of income? The second $1,000? The third $1,000?