If the (Average)tax Rate Falls by 20% and as a Result

question 39

Multiple Choice

If the (average) tax rate falls by 20% and as a result the tax base rises by 20%,tax revenues will

• A) rise.
• B) decline.
• C) remain unchanged.
• D) There is not enough information given to answer this question.

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Definitions:

Economic Responsibility

The obligation of an individual or organization to act in ways that are financially viable and in the best interest of the economic health of society.

Chit Fund

A type of rotating savings and credit association system practiced in India, where a group of people contribute to a common fund and bid to use the accumulated sum.

Corporate Social Responsibility

A business model that involves practices that benefit society and the environment beyond what is legally required.

Legal Guidelines

Standards and rules established by legislation that guide behavior and business practices.