If the Tax Function Is Given by T = -

question 24

Multiple Choice

If the tax function is given by T = - 20 + 0.1Y the average tax rate would

• A)be 0.1.
• B)fall as income falls.
• C)vary negatively with income.
• D)be - 20 + 0.1.
• E)none of the above

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Definitions:

Absorbed

The process by which substances are taken into cells or across tissues, such as liquids absorbed by the skin or nutrients by the body.

Manufacturer

A person or company that makes goods for sale, especially on a large scale and involving complex machinery and processes.

Analgesic

A class of drugs designed to relieve pain without causing loss of consciousness, often referred to as painkillers.

Antacids

Medications that neutralize stomach acid to relieve symptoms of heartburn and indigestion.