Author Question: The Lithuanian tax rate for all citizens' income is 24 percent. If the Lithuanian government was ... (Read 14 times)

cabate · **on:** Jun 29, 2018

The Lithuanian tax rate for all citizens' income is 24 percent. If the Lithuanian government was concerned about income inequality, they should change the tax system from a system that is currently ________ to a system that is ________.

A) progressive; proportional
B) regressive; progressive
C) proportional; progressive
D) proportional; regressive

Question 2

Consumption possibilities are limited by total utility. True or false? Explain.

Indicate whether the statement is true or false

Cheesycrackers · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

False. Consumption possibilities are limit by the consumers' income and by the prices of goods and services they buy. Total utility does not limit consumption, it is a measure of total benefit that consumers get from consumption of goods and services.