Which of the following is true of a progressive tax system?
A) High income households pay a higher percentage of their income as taxes.
B) Low income households pay a higher percentage of their income as taxes.
C) All households pay the same amount of taxes irrespective of their income.
D) All households pay the same percentage of their income as taxes.
Question 2
Which is the most likely effect upon the market for cotton of a greatly increased price for corn, which can usually be grown on land suitable for cotton cultivation?
A) The demand for cotton will decrease and the quantity exchanged will fall.
B) The demand for cotton will increase and the quantity exchanged will rise.
C) The supply of cotton will increase and the quantity exchanged will rise.
D) The supply of cotton will decrease and the quantity exchanged will fall.
E) The supply of cotton will increase and the quantity exchanged will fall.
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