-A Tax Is Progressive If the Average Tax Rate

question 37

Multiple Choice

-A tax is progressive if the average tax rate

• A) increases as income increases.
• B) is positive.
• C) increases as income decreases.
• D) is negative.

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Definitions:

Planning Budget

A forecast of income and expenditure over a specified future period, used to guide the financial direction of a business.

Budgeting

The process of creating a plan to allocate resources (revenue and expenses) for a specific period, typically used for financial planning and control.

Activity Variances

Differences between the planned or budgeted amounts of costs and revenues and the actual amounts incurred, driven by variations in business activities.

Customers Served

The number of customers a business or service has provided for or sold to during a specific period, indicating the reach or impact of the business.