40
QuizMultiple Choice

Business and Government — Test

Question 40 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

How are progressive taxes and regressive taxes similar?

Answer
A
Both are considered flat taxes.
B
Both are determined based on income.
C
Both are types of indirect taxes.
D
Both charge high-income individuals more.

Explanation

Progressive and regressive taxes differ in how their burden changes as income changes, but both are analyzed in relation to a person’s income. A progressive tax takes a larger share from higher-income earners, while a regressive tax takes a larger share from lower-income earners. Therefore, both are determined based on income.

AI-written and checked against the verified answer.

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