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.
Common Household Measures
Distribution of the Income of Americans
Income of Adult Children Compared With That of Their Parents
Relationship between Income Inequality and Sociopolitical Instability
Income per Capita versus Total Fertility Rate
Capital’s Share of Income in a Cross-Section of Countries