A tax is O regressive when everybody pays the same amount of tax O regressive when all taxpayers pay the same rate O proportional when everybody pays the same amount of tax proportional when it is levied on goods and services at the same standard rate.

Q: What is the relative importance of taxation to the economy of the country

A: Taxes are a source of government revenue which is charged on the goods and services purchased by the…

Q: Give two arguments why wealthy taxpayers shouldpay more taxes than poor taxpayers

A: 2 arguments that why wealthy taxpayers should pay more taxes than the poor are as follows: ·…

Q: ose George's income is $10,000 and he pays a tax of $1,000, but Laura's income is $50,000 and she…

A: Tax is referred to financial charge that is compulsory for every individual. Taxation is a term used…

Q: What is direct tax and indirect tax? Give example. How does taxation helps in fiscal development?

A: Direct Tax A direct tax, to put it simply, is one which you pay to the taxing authority directly.…

Q: What is Fiscal Policy? Discuss types of Fiscal policies

A: Fiscal policy refers to change in government expenditure and revenue(taxes) in order to achieve…

Q: How would you characterize the tax system? O. Progressive Ob. Regressive O. Proportional Od.…

A: The charge that is being levied on goods and services by the government is known as tax. It is…

Q: Help Save&Exit Submit Suppose an income tax is imposed that takes $1,000 from someone with an income…

A: The correct answer to the abovementioned question is Progressive tax.

Q: Which of the following is a significant revenue source for state and local governments, but not the…

A: Taxes are the amount charged by the government for the services provided and are the means of…

Q: Which of the following is true in the United States? O A. Only state governments can collect taxes.…

A: Tax is the compulsory payment to the government and it is the main source of government revenue.…

Q: 3. Does it matter that increased govemment debt/GDP ratios place a higher tax burden on future…

A: According to the Ricardian equivalence theorem, the impact of higher debt-financed government…

Q: Thelma's current income is $100,000 and she currently pays $30,000 in income tax.w Any income she…

A: Average tax rate = (Total tax / Total income) Marginal tax rate = (change in tax paid / change in…

Q: Suppose AS decreases by $50 billion for every 1 percentage point increase in business tax rates. By…

A: Answer; Increase in tax rate = 28 -22 = 6%.

Q: Discuss the consequence of a rise in direct taxes to the economy as a whole

A: Taxes: The direct tax included the income tax that is levied on the income of an individual. Income…

Q: 9) Which of the following sequence of events follows an increase in net taxes? A) ADĮ = Y = Mdį =…

A: Increase in net taxes imply fall in the disposal income.

Q: overnments use taxes to raise revenue. If governments increase the tax rate, is this uaranteed to…

A: Tax revenue is product of size of tax and the quantity sold at this taxed price.

Q: xplain the benefits principle and the ability-to-pay principle. What are vertical eguity and…

A: Microeconomics is the study of how people and businesses allocate resources and set prices for…

Q: The social security tax is 6.2% on employees’ income earned below $113,000. Is this tax progressive,…

A: -Progressive tax is the rate of tax which increases with the rise in income that is to be taxed so…

Q: 16. Which of the following would not cause a shift in (Ad) : A) a reduction in income tax B) a…

A: Answer: A fall in the cost of production Aggregate demand represents the demand for the total amount…

Q: of real GDP if government spending increases by $150? 18. What is the new equilibrium level of real…

A:

Q: An example of an automatic stabilizer is: O A. government transfers rising when GDP rises. O B. tax…

A: "Economic stabilizers are any economic instruments that smoothen the business cycle." "Automatic…

Q: II. Illustrate cach of the following situations with a graph showing IS curve: a. An increase in…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Discuss the view that the best way to achieve greater equity in the distribution of income in a…

A: The concept that depicts that every income group in a nation would be having similar and a less…

Q: What is meant by a progressive tax? A regressive tax? A proportional tax? Comment on the…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: For questions 4 -6: Consider an economy with 1000 residents, and-the following income distribution:…

A: From the question above, it is concluded that:  There are total 1000 residents in an economy.…

Q: Identify whether each of the following taxes is progressive or regressive and indicate in each case…

A: 1. The Federal Personal Income tax is” progressive, and the incident is on the taxpayer” As income…

Q: a. A progressive tax is one in which the average tax rate is constant as income increases. O the…

A: " Since you have posted a question with multiple sub-parts, we shall answer the first sub-parts . To…

Q: Calculate the average and marginal tax rates inthe following table, and indicate whether the taxis…

A: Average Tax Rate:- Average Tax rate=Total tax dueTotal taxable income×100 Marginal Tax Rate:-…

Q: Fill in the missing numbers on the chart. Then tell me where we are operating on the Planned AE/RGDP…

A: RGDP Tax DI C S I G X-M Planned AE Chg in Inv 5 1 4 3.7 0.3 1 0.8 -0.5 5 - 5.5 1 4.5 4.1 0.4 1.1…

Q: An example of an expansionary fiscal policy is O a) eliminating certain deductions for taxes on…

A:

Q: Suppose there is a simultaneous increase in government spending (fiscal policy) and autonomous…

A: Re-arranging the functions : Consumption function : C = C0 + bY - bT  Tax : T = T0 + tY Similar…

Q: Which of the following sequence of events follows a decrease in net taxes? A) AD↑ = Y↑ = MDĮ = r\.…

A: Decrease in net taxes happens with the increase in disposable income which will bring a rise in the…

Q: Question: Solve for the equilibrium level of output in the following two scenarios: there isan…

A: Y=−5+0.5(Y−250−0.1Y)+200+300+50'

Q: Which of the following statements is/are ALWAYS true? i A tax is progressive because the tax rate…

A: Answer: Progressive taxation: When the tax rate increases as the taxable income increases it is…

Q: Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with…

A: The effect of taxes on incentives to raise, save, or spend is calculated by average tax rates, while…

Q: b) Show that the activity Y when the parliamentary majority increases Ip by 100 so that Alp = 100…

A: AD = C+I+G+NX  Where C = consumption expenditure I = investment expenditure G= government spending I…

Q: proportional tax, sometimes referred to as a flat tax, is a kind of income tax wherein all taxpayers…

A: Proportional tax is that the taxing mechanism within which the taxing authority charges constant…

Q: If this year, the government collects £250bn in taxes and spends £400bn, it must have a  a) budget…

A: In this question, we have to tell whether the economy will have a budget deficit or budget surplus…

Q: Suppose a tax is such that an individual with an income of $10,000 pays $2,000 of tax, a person with…

A: Taxes is the compulsory payment levied on the citizens by the government. The tax is said to be…

Q: Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $170…

A: a.  As the tax rate at every unit of Real GDP is the same, i.e. 20% of the Real GDP, therefore, the…

Q: An example of a regressive tax are O corporate income taxes. O personal income taxes. the social…

A: Answer - the social security taxes

Q: what's the relation ship between Tax Burden and Inequality ?

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: A sales tax is an example of a tax, which requires lower income people to pay a higher share of…

A: Sales tax refers to the tax paid by the sellers or producers when they sell output in the market.