From the Net Tax Function: T = T₀ + T₁Y,where

question 10

Multiple Choice

From the net tax function: T = t₀ + t₁Y,where t₀ < 0 and t₁ > 0,it follows that,as income rises

• A)average taxes falls and the surplus declines.
• B)average taxes rises and the deficit increases.
• C)average taxes falls and the deficit declines.
• D)Average taxes and the deficit do not change.

---

Definitions:

Absentmindedness

A state of preoccupation where one is so lost in thought that they become unaware of their immediate surroundings or actions.

Shallow Encoding

The process of encoding memory based on superficial features like the sound or appearance of words rather than their meanings.

Proactive Interference

The difficulty in learning new information because of the interference of existing similar knowledge or memories.

Retroactive Interference

A phenomenon where newly acquired information interferes with the retention of previously learned information.