« previous next »

Author Question: Describe the properties of a progressive tax and illustrate with an example. What will be an ... (Read 30 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
Describe the properties of a progressive tax and illustrate with an example.
 
  What will be an ideal response?

Question 2

In the early 1990s Intel produced a 486 microchip for personal computers that contained a math co-processor that increased its speed of performing calculations and other operations.
 
  After a time Intel decided to disable the coprocessor on large numbers of their chips before sending them out for shipment and sale. What could have been the motive of Intel to deliberately reduce the quality of some of its chips?


234sdffa

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 29, 2018
Answer to Question 1

A progressive tax is one in which the burden, expressed as a percentage of income, increases as income increases. A tax that exacts a higher proportion of income from higher-income households than from lower-income households is a progressive tax.

Answer to Question 2

Since the math coprocessor was installed on all of its chips Intel didn't have an ability to find out their customers ability and willingness to pay for it. However, by disabling the math coprocessor on some of their units and leaving it intact on the remainder, customers would decide for themselves whether or not the premium price for the coprocessor was worth it. This allowed Intel to segregate the market and increase profits through price discrimination.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Four main models that describe the relationship between ecosystem function and biodiversity. Four main models that describe the relationship between ecosystem function and biodiversity.
Emphysema. (a) Illustration comparing normal lungs and emphysemic lungs. The inserts illustrate how Emphysema. (a) Illustration comparing normal lungs and emphysemic lungs. The inserts illustrate how
A Layer Based on Electrical Properties: The Ionosphere A Layer Based on Electrical Properties: The Ionosphere
Describe the Conceptual Forecasting Framework in your own words. Describe the Conceptual Forecasting Framework in your own words.
IMAGES THAT DESCRIBE CELLULAR PARTS IMAGES THAT DESCRIBE CELLULAR PARTS
Progressive restriction of cell fate during development in Drosophila Progressive restriction of cell fate during development in Drosophila
Video: Inflammation and Fever

For a complete list of videos, visit our video library