If a tax rate falls as a person's income rises, the tax is a:
a. proportional tax.
b. progressive tax.
c. regressive tax.
d. poll tax.
e. constant tax.
Question 2
Comparative advantage indicates that:
a. specialization and exchange will permit trading partners to maximize their joint consumption.
b. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods.
c. a nation can gain from trade only when its trading partners are not low-wage countries.
d. countries should export products for which they are high-opportunity cost producers.
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