Author Question: Which of the following is a regressive tax? a. A state tax of 5 percent of income. b. A local ... (Read 77 times)

Haya94 · **on:** Jun 30, 2018

Which of the following is a regressive tax?
a. A state tax of 5 percent of income.
b. A local sales tax of 5 percent.
c. The federal individual income tax.
d. A federal flat tax of 30 percent.

Question 2

Trade between nations A and B:
a. leaves the production possibilities of nation A unchanged.
b. leaves the production possibilities of nation B unchanged.
c. increases the consumption possibilities of both nations.
d. All of these are true.