Assume a family that earns $20,000 pays $1,500 in income taxes, while a family that earns $40,000 pays $3,200 in income taxes. In this situation, the income tax system is:

progressive.

Explanation:

Data provided in the question

Family earns = $20,000

Income tax paid = $1,500

In the other case,

Family earns = $40,000

Income tax paid = $3,200

The tax rate in the first case is

= Income tax paid ÷ family earning

= $1,500 ÷ $20,000

= 7.5%

The tax rate in the second case is

= Income tax paid ÷ family earning

= $3,200 ÷ $40,000

= 8%

As we can see that with the increase in income the income tax rate is also increases that reflect the progressive taxation

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; i believe the correct answer is (180)