If We Want to Gauge How Much the Income Tax

question 154

Multiple Choice

If we want to gauge how much the income tax system distorts incentives, we should use the

• A)average tax rate.
• B)ability-to-pay principle.
• C)total tax revenue collected.
• D)marginal tax rate.

---

Definitions:

Skeptical

Having an attitude of doubt or a disposition towards incredulity either in general or toward a particular object.

Need to Belong

An inherent human drive to form and maintain strong, stable interpersonal relationships.

Psychologists

Professionals specializing in the science of behavior and mind, encompassing all aspects of conscious and unconscious experience as well as thought.

Fear of Failure

An apprehension or anxiety about failing to achieve a goal or success, which can inhibit risk-taking and growth.