Which one of the following is based on the idea that marginal utility of income diminishes as income increases?
A)Progressive taxation
B)Capital controls
C)Minimum wages
D)Price controls
E)Employee compensation regulations

Question

Quizplus · Accepted Answer

Progressive taxation is based on the idea that as income increases, the marginal utility of each additional unit of income diminishes. Therefore, a greater proportion of income can be taxed at higher rates for higher earners without decreasing their overall satisfaction.

Which One of the Following Is Based on the Idea