41. What are the most important characteristics of modern money?

While money has changed in shape, kind or size over the years, modern money still shares many of the same characteristics of primitive money. The most important characteristics of modern money are portability, durability, divisibility.

Modern money is very portable when people carry checkbooks. For example, they really are carrying very large sums of money since checks can be written in almost any amount.

Modern money is very durable. Metallic coins last a long time under normal use and generally do not go out of circulation unless they are lost. Paper currency also is reasonably durable.

Modern money also rates high in divisibility. The penny which is the smallest denomination of coin, is more than small enough, for almost any purchase. In addition, checks almost always can be written for the exact amount.

42. What is a progressive tax?

A progressive tax is a tax by which the tax rate increases as the taxable base amount increases. "Progressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from low to high, where the average tax rate is less than the marginal tax rate.

It can be applied to individual taxes or to a tax system as a whole. Progressive taxes attempt to reduce the tax incidence of people with a lower ability-to-pay, as they shift the incidence increasingly to those with a higher ability-to-pay.

The term is frequently applied in reference to personal income taxes, where people with more income pay a higher percentage of that income in tax than do those with less income. The opposite of a progressive tax is a regressive tax, where the tax rate decreases as the amount subject to taxation increases.

43. What is the main source of government revenue?

A major source of government revenue is the property tax — a tax on real property and tangible or intangible personal property. Real property includes land, buildings and anything else permanently attached to them. Tangible property is all tangible items of wealth not permanently attached to land or buildings, such as furniture, automobiles, the stock of goods in retail stores and clothing. Intangible personal property includes stocks, bonds, mortgages, and bank accounts.

The main problem with personal property as a source of revenue is that many items are not always brought to the attention of the tax assessor — the person who places value on property for tax purposes. Because of this, many things that should be taxed never are. Another problem is that some property is very hard to evaluate fairly.

44. What is the difference between tangible and intangible property?

I think that answering for the given question for the first time it is necessary to define term “property”. Property is any physical or intangible entity that is owned by a person or jointly by a group of persons. Real property includes land, buildings and anything else permanently attached to them.

Economists distinguish tangible and intangible property. Tangible property is all tangible items of wealth not permanently attached to land or buildings, such as furniture, automobiles, the stock of goods in retail stores and clothing that can be touched or felt. Intangible personal property includes stocks, bonds, mortgages, and bank accounts.

The difference between tangible and intangible property is that the intangible property are something that cannot be touched or felt like tangible property.