Question: In an economy with a progressive tax system, there is an increase in before tax incomes. What will happen to after-tax incomes?
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a.They will decrease less than proportionately
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b.They will decrease more than proportionately
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c.They will increase less than proportionately
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d.They will increase more than proportionately
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e.None of these
Answer: c
 They will decrease less than proportionately b) They will decrease more than proportionately c) They will increase less than proportionately d) They will increase more than proportionately e) None of these Ans. c) They will increase less than proportionately
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