Refer to the Above Data

question 71

Multiple Choice

Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, the tax system:

• A)is regressive.
• B)is proportional.
• C)is progressive.
• D)may be either proportional or progressive.

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Definitions:

Events

Occurrences or happenings, especially significant ones, or in probability theory, the outcomes or sets of outcomes of a random experiment.

Independent

Not influenced by others; making decisions or drawing conclusions based on one's own thoughts and conditions, not controlled by external factors.

Speeding Ticket

A fine or penalty issued by law enforcement to drivers exceeding the legal speed limit.

Events

Occurrences or outcomes that can be observed and are often of interest in probability and statistics.