Refer to the Information Provided in Table 19 -Refer to Table 19

question 138

Multiple Choice

Refer to the information provided in Table 19.1 below to answer the question that follows.
Table 19.1 $$\begin{array} { c c c c } \text { Total Income} &\text { Total Taxes } & \begin{array} { c } \text { Average Tax } \\\text { Rate }\end{array} & \begin{array} { c } \text { Marginal Tax } \\\text { Rate }\end{array} \\\hline \$ 5,000 & \$ 750 & 0.15 & 0.15 \\\$ 10,000 & \$ 1,200 & 0.12 & 0.09 \\\$ 15,000 & \$ 1,500 & 0.10 & 0.06 \\\$ 20,000 & \$ 1,600 & 0.08 & 0.0 \\\hline\end{array}$$
-Refer to Table 19.1. The tax rate structure in this example is

• A) proportional.
• B) progressive.
• C) regressive.
• D) marginal.

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Definitions:

Prices In Resource Markets

The costs associated with purchasing inputs like labor, land, and capital in markets where they are traded.

Relative Scarcity

The condition where the availability of resources is limited compared to the unlimited wants and needs.

Demand For Resource

The desire and willingness of firms or individuals to acquire resources at various price levels.

Resource

Refers to assets or inputs used in the production of goods and services, such as time, money, or raw materials.