What is a progressive tax?
Answer and explanation
Correct answer: B. A tax whose rate rises as the taxpayer's income rises
- Step 1: A progressive tax takes a larger share of higher incomes. Step 2. French income tax works this way, by brackets. Answer: a rate that rises with income. Why not the others: these describe a flat tax, a regressive tax and a customs duty.
Practise more Économie : croissance, marchés et politiques.
Free questions with an explanation for every one, and full timed French Baccalaureat mock tests.
More Économie : croissance, marchés et politiques questions
- What does gross domestic product (GDP) measure?
- What is inflation?
- Why do economists use real GDP rather than nominal GDP to compare growth over time?
- How is the unemployment rate calculated?
- When the price of a good rises by 10 percent and the quantity demanded falls by 20 percent, what is the price elasticity of demand and how i…
- In a competitive market, what happens at the equilibrium price?