Under a progressive tax, people pay Question 5 options: A) same percentage of th

Question

Under a progressive tax, people pay

Question 5 options:

A) same percentage of their incomes, regardless of how much they earn.

B) the same dollar amount, regardless of how much they earn.

C) higher percentages of their incomes when they earn more.

D) lower percentages of their incomes when they earn more.

Suppose a person with an income of $50,000 pays a tax of $7,500. If the tax is proportional, then how large of a tax will a person with an income of $100,000 pay?

Question 6 options:

A) Exactly $7,500.

B) Between $7,500 and $15,000.

C) Exactly $15,000.

D) More than $15,000.

Sales and excise taxes tend to be

Question 7 options:

A) regressive.

B) propotional.

C) progressive.

D) fixed-income.

Suppose a city is holding an election for mayor. Lex has decided that it's just not worth the time and effort to figure out which candidate he prefers and chooses not to vote. Economists would say that Lex is subject to

Question 9 options:

A) government failure.

B) the benefits-received principle.

C) rational voter ignorance.

D) regressive voting ignorance

Explanation / Answer

First question is answered below

Correct option: C) higher percentages of their incomes when they earn more.

Reason: Under progressive tax system, as taxable income increases, percentge of tax imposed increases. It is progressive in the sense that tax paid increases as income increases.

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