A progressive income tax means that those with a higher income pay ?

Related Mcqs:

1. If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?

   A. progressive
   B. regressive
   C. value added taxes (VAT)
   D. excise taxes

2. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

3. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

4. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

5. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

6. A progressive tax system is one where ?

   A. marginal tax rates are high.
   B. higher income taxpayers pay more taxes than do lower income taxpayers.
   C. marginal tax rates are low.
   D. higher income taxpayers pay a greater percentage of their income in taxes than do lower income taxpayers.

7. The total amount of tax you pay divided by your total income is the ?

   A. average tax rate
   B. marginal tax rate
   C. proportional tax rate
   D. total tax rate

8. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

   A. Three vases will be sold, and consumer surplus is Rs80
   B. One vase will be sold, and consumer surplus is Rs5.
   C. One vase will be sold, and consumer surplus is Rs30.
   D. Three vases will be sold, and consumer surplus is Rs0.
   E. Two vases will be sold, and consumer surplus is Rs5.

9. The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ?

   A. debt burden
   B. the Laffer curves
   C. bracket creep
   D. fiscal drag

10. A tax whose burden expressed as a percentage of income, falls as income increases is a ?

    A. benefits received tax
    B. progressive tax
    C. regressive tax
    D. proportional tax