If a Tax Is Progressive, Then

question 10

Multiple Choice

If a tax is progressive, then

• A) the average and marginal tax rates are always equal.
• B) as the tax base increases, the marginal tax rate declines.
• C) as the tax base rises, the average tax rate is greater than the marginal tax rate.
• D) as the tax base increases, the marginal tax rate is greater than the average tax rate.