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A regressive tax will tend to redistribute income more?
Savithavardhani
equally
Wiki User
∙ 13y ago
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What is a high and low income countries?
They are countries with high or low income. High income countries (HICs) tend to be in the Northern hemisphere and low income countries (LICs) tend to be in the Southern hemisphere. There are also middle income countries (MICs).
What do people buy when the economy is bad?
When the economy is 'bad', real income is falling. When real income falls, two changes occur: 1) People tend to buy cheaper substitute goods. 2) People tend to decrease consumption of luxury goods.
What do you call a good whose income elasticity is less elasticity of demand?
A. Explain whether demand would tend to be more or less elastic for each of the following three determinants of elasticity demand.1. Availability of substitute goods2. Share of consumer income devoted to a good3. Consumer's time horizon
What factors tend to make demand curves more price elastic?
Close substitutes, increased income, luxury goods, time. Addiction makes demand less elastic, (inelastic) ex. Cigarettes. As time increases more substitutes become available.
How will a fall in prices affect consumer saving?
If a person earns more,he will save more.Young people save less of their income than middle aged people.People with children tend to save more to help pay their children's education in life.If a person earns more,he will have the tendency to buy more if price decreases.
How does Regressive tax tend to redistribute amount?
equally
What is the difference between progressive and regressive taxation?
In a progressive tax, the more you earn, the higher your tax rate.In a regressive tax, the less you earn, the higher your tax rate.The classical progressive tax is income tax.The classical regressive tax is sales tax.
Why aren't all sales tax the same?
If all purchases are subject to the same tax rate, the tax rate itself is flat with those who consume more paying more in taxes. While the tax on spending as a percentage of gross income may be regressive, the effective tax rates can be progressive on consumption due to exemptions or rebates. Sales taxes are considered to be regressive tax; that is, low income people tend to spend a greater percentage of their income in taxable sales (using a cross section time-frame) than higher income people. However, this calculation is derived when the tax paid is divided not by the tax base (the amount spent) but by income, which is argued to create an arbitrary relationship. If a sales tax is to be related to income, then the unspent income can be treated as tax-deferred (spending savings at a later point in time), at which time it is taxed. Sales taxes often exclude items or provide rebates in an effort to create progressive effects. In many locations, "necessary" items such as non-prepared food, clothing, or
What is a high and low income countries?
They are countries with high or low income. High income countries (HICs) tend to be in the Northern hemisphere and low income countries (LICs) tend to be in the Southern hemisphere. There are also middle income countries (MICs).
Explain the concept of income elasticity of demand and how it is calculated?
When you have less income you tend to consume less.
What falls more heavily on the rich than on the poor?
Taxes tend to fall more heavily on the rich compared to the poor, as the wealthy are typically in higher tax brackets and have more financial resources subject to taxation. Additionally, economic downturns and fluctuations can impact the wealthy more significantly due to their larger investments and assets.
Is there a is relationship between income and value of car own?
Yes, there is a relationship between income and the value of the car someone owns. Typically, higher income individuals tend to own more expensive and higher value cars, while lower income individuals may own less expensive vehicles. This relationship is influenced by various factors such as affordability, lifestyle choices, and financial priorities.
Which age group had the highest level of income?
Typically, older age groups, such as those in their 40s and 50s, tend to have higher income levels due to more years of work experience and career advancement.
What Conservatives tend to favor over income taxes?
sales taxes
Why does income for a family tend to go up when two single persons marry?
Newly married couples tend to have two earners rather than one
What do people buy when the economy is bad?
When the economy is 'bad', real income is falling. When real income falls, two changes occur: 1) People tend to buy cheaper substitute goods. 2) People tend to decrease consumption of luxury goods.
What is Relative Income Hypothesis?
The Relative Income Hypothesis posits that an individual's consumption and savings decisions are more influenced by their relative income or position in society, rather than just their absolute income level. This theory suggests that people tend to compare their income and consumption to those of others around them, impacting their financial behavior.
