When a Distribution Shows a Large Majority of Very Low

question 2

Multiple Choice

When a distribution shows a large majority of very low scores and a few very high scores, the distribution is said to be

• A) skewed to the right
• B) skewed to the left
• C) skewed to the middle
• D) bimodal

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Definitions:

Lump-Sum Tax

A tax that is a fixed amount, not dependent on the taxpayer's income level or economic transactions.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is achievable but is not achieved.

Vertical Equity

The principle that taxpayers with higher incomes should pay more in taxes than those with lower incomes.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of additional income that is paid in tax.