If the tax rates on income increase as income increases this is an example of:

Select one:

a. A flat tax

b. A progressive tax

c. A regressive tax

d. A sin tax

Which of the following statements is most correct?

Select one:

a.

Horizontal equity arises where persons in different positions are treated similarly

b.

Vertical equity arises where persons in similar positions are treated differently

c.

The application of higher rates of tax to persons earning higher incomes and the application of lower rates of tax to persons on lower incomes is an example of vertical equity

d.

Horizontal and vertical equity are measures of simplicity in the taxation system