Multiple Choice
A consumption tax would
A) discourage saving because individuals would only pay taxes on income they spend.
B) be progressive because everyone would be subject to the same tax system.
C) be proportional because everyone would be subject to the same tax system.
D) be progressive or regressive depending on the structure of the tax system.
Correct Answer:

Verified
Correct Answer:
Verified
Q15: Suppose the income tax rate is zero
Q16: Government goods are<br>A)merit goods supplied by government.<br>B)public
Q17: Provincial sales taxes are<br>A)progressive because higher income
Q18: An example of a regressive tax is
Q19: A family making $30,000 pays $4,500 in
Q21: Which of the following commodities is a
Q22: One distinguishing characteristic of a public good
Q23: Explain how corporate profits are subject to
Q24: A demerit good is a good or
Q25: Which of the following would be classified