When a Tax Is Proportional, the Average Tax Rate

question 58

Multiple Choice

When a tax is proportional, the average tax rate:

• A) decreases with income.
• B) is constant with income.
• C) increases with income.
• D) first increases with income, then decreases with income.

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Definitions:

Row Variable

A row variable in statistical or data analysis refers to a variable that is presented horizontally in a table or dataset, representing different categories or groups for analysis.

Column Variable

A variable whose values are laid out in columns in a table or dataset, facilitating vertical comparison across data points.

Alpha

In statistics, alpha often denotes the level of significance, a threshold below which the null hypothesis is rejected.

Chi-Square

A statistical test used to determine if a significant relationship exists between two categorical variables in a contingency table.