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Unformatted text preview: 1) 20% 2) 17.5% 3) 13% b. Is the tax rate progressive, proportional, or regressive? The above example states a regressive tax system. California is more inclined to such a system. Such a system puts more burdens on the families earning the lowest income and the puts less demand of taxes on the wealthy corporations who simply arent paying enough. 2. The major functions of government are: a. Establishing and enforcing the rules of the game b. Regulating natural monopolies: c. Providing public goods d. Dealing with externalities e. A more equal distribution of income: f. Full employment, price stability, and economic growth 3. Advantages of forming corporations: a. It enables the entity to accumulate vast pools of funds through public trading. Many people can invest in the corporation by buying shares that are divided into small denomination. It helps the entity to finance the business on large scale. b. The liability of the shareholders is limited to the value of their shares....
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This note was uploaded on 05/26/2011 for the course ECON 1 taught by Professor Keskiniel during the Spring '11 term at Louisiana College.
- Spring '11