A study found the poorest quintile of households paid 10% of their income in taxes while the richest quintile paid 25% of their income. This is an example of a __________ tax system.Group of answer choicesProportionalMarginalRegressiveProgressive

The poorest 20 percent of families in the United States make up the lower class. According to data provided by the U.S. Census Bureau, what percentage of all U.S. income is earned by the 20 percent of families with the lowest income?A.8 percentB.less than 1 percentC.more than 10 percentD.about 4 percent

1. Consider a society where 4 individuals earn $10 each and 6 individuals earn $5 dollars each. (a) Build a table with the size distribution of income (also known as cumulative distribution of income).(b) Reshape the distribution of income in quintiles(c) What share of the total income did the top 40% get?

Compared to marginal tax rates, effective tax rates reflect taxes paid _______.Group of answer choicesAs a percentage of total incomeIn each pay checkBased on deductionsOn last dollar earned

Which kind of person would pay a higher rate with a progressive tax?A.A person with a low incomeB.A person with few dependentsC.A person with many dependentsD.A person with a high income

Distinguish between equity and equality.Explain two ways in which a country might establish its national poverty line.Explain the difference between absolute and relative poverty.Explain two causes of inequalityExplain what would happen to the distribution of income if a country were to decrease the direct tax rates for top income earners, and reduce its indirect tax rate. HL only: Analyze the relationahisp between a country's Gini coefficient and its Lorenz curve. part b. questions (HL only)Using real-world examples, evaluate the consequences of a country adopting a more progressive tax structure.Using real-world examples, evaluate the effectiveness of minimum wages in achieving a more equitable distribution of income. Using real-world examples, discuss the extent to which transfer payments can alleviate povertyUsing real-world examples, evaluate the view that a government's fiscal policy can be both a cause of inequality and a means of reducing inequality. 4-mark questions (HL P2, SL P2 or HL P3)A country increases its indirect tax rate. Using a Lorenz curve diagram, explain how this may impact the country's distribution of income. Citizen A in a country earns $130,000 and pays $12,000 in taxes. Citizen B earns $55,000 and pays $10,000 in taxes. Explain whether the tax structure is progressive or regressive (HL only)