Question 14
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If the income tax system is progressive, what does it mean?
Oa. Progressively more persons are taxed each year.
b. Those with higher incomes pay a higher percentage of their incomes in taxes.
c. The distribution of income is more equal before the tax than after.
d. If a person earning $20,000 pays $6,000 in taxes, then a person earning $40,000 would pay twice as much ($12,000) in
taxes.
Question 15
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A nation has a comparative advantage in the production of a good. Relative to foreign-produced substitutes, we would expect the
price charged for the product will be which of the following?
a. lower because of a lower opportunity cost
b. lower because cost-cutting has reduced the quality
c. higher because foreign-produced goods are more exotic
d. higher because the quality is superior