Suppose a person with an income of $50,000 pays a tax of $7,500. If the tax is p

Question

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?

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

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

A) government failure.

B) the benefits-received principle.

C) rational voter ignorance.

D) regressive voting ignorance

Explanation / Answer

C) Exactly $15,000., t= 7500/15000 = .15 , Tax = .15*1000000= 15000

A) regressive, a regressive tax is one in which burden falls with increase in income

B) the benefits-received principle.

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