If the Average Tax Rate Increases as Income Increases, the Tax

question 68

Multiple Choice

If the average tax rate increases as income increases, the tax is

• A) regressive.
• B) progressive.
• C) an excise tax.
• D) proportional.
• E) a decreasing marginal-rate tax.

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Definitions:

Negotiable Instrument

A signed document that promises payment to a specified person or assignee.

Unconditional Promise

A firm commitment or pledge not subject to any conditions or contingencies.

Transferee

An individual or entity that receives property, rights, or interests from another through a legal transfer process.

Endorsement

The act of signing the back of a negotiable instrument, which allows for the transfer of rights from one party to another or specifies particular conditions of transfer.