A flat tax: Select one: a. is designed so that everybody would pay the same numb

ID: 1153110 • Letter: A

Question

A flat tax:

Select one:

a. is designed so that everybody would pay the same number of dollars in taxes.

b. is designed in such a way that as a person's income rises, the tax rate falls.

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.

A progressive tax:

Select one:

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.

A public good is:

Select one:

a. a good or service for which it is relatively easy to exclude nonpaying customers from consumption.

b. a good or service that is consumed by both the paying and nonpaying customers.

c. any good or service that is produced by the government.

d. a good or service that is consumed by private individuals and financed by private contributions.

A regressive tax:

Select one:

a. is designed to take a larger percentage of higher incomes as compared to lower incomes.

b. is designed in such a way that as a person's income rises, the amount of tax as a proportion of income rises.

c. takes a greater proportion of the income of lower-income groups than of higher-income groups.

d. is considered to be the most equitable type of tax.

1. The correct answer is (C) i.e a flat tax is designed so that everyone would be charged the same percentage of their income.

2. The correct answer is (A) i.e a proportional tax is designed to take a larger percentage of higher incomes as compared to lower incomes.

3. The correct answer is (B) i.e a good or service that is consumed by both the paying and non-paying consumers.

4. The correct answer is (C) i.e takes a greater proportion of the income of lower income groups than of higher income groups.

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