The Long-Run Relative Frequency of an Event Based on the Assumption

question 52

Multiple Choice

The long-run relative frequency of an event based on the assumption of an infinite number of observations with no change in the underlying conditions is called

• A)objective probability.
• B)objective risk.
• C)subjective probability.
• D)subjective risk.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of a person's income is taxed.

Personal Income

The total amount of income earned by individuals, including wages, salaries, investments, and other sources before taxes.

Excise Tax

A tax applied to specific goods, services, or activities, often with the intention of reducing consumptions, such as taxes on tobacco or alcohol.

Tax Incidence

The study of who ultimately bears the economic burden of a tax, whether producers or consumers.