A Local Government Currently Has a Tax Base of $4

question 190

Multiple Choice

A local government currently has a tax base of $4 billion and a tax rate of 5 percent. If the tax rate is increased to 6 percent, the tax base will decrease to $3.5 billion. If the goal is to maximize tax revenues the tax rate should be

• A)lowered below 5 percent.
• B)kept at 5 percent.
• C)raised to 6 percent.
• D)abolished.

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Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

P-value

A statistical measure that helps scientists and researchers determine the significance of their experiment's or study's results.

Lambda

A symbol (λ) used in various scientific fields, including mathematics, physics, and computer science, representing wavelengths, eigenvalues, and other concepts.

Coefficient Alpha

A statistic used to assess the reliability or consistency of a set of scale or test items.