Refer to the scenario above. If the first household pays 20 of its income as tax,
the second household pays 17.5 of its income as tax, the third household pays 13 of its income as tax, and the fourth household pays 10 of its income as tax, income taxes are ________ in nature.
A) progressive
B) regressive
C) cardinal
D) ordinal
Question 2
A natural monopoly
A) faces more competition after regulation.
B) might exaggerate its costs if it is regulated using rate of return regulation.
C) might falsely minimize its costs if it is regulated using rate of return regulation.
D) might falsely minimize its costs if it is regulated using a marginal cost pricing rule.
E) is allowed to maximize its profit under a marginal cost pricing rule.
Worldwide Variations in Population and Income Levels Developed countries represent only 18% of the
Global Stratification: Income of the World's Nations
Global Stratification: Income of the World's Nations
Ten Leading Causes of Death in Low-Income Countries, 2008
Determination of Income Inequality
Relationship between Income Inequality and Sociopolitical Instability