Which of the Following Is True

question 89

Multiple Choice

Which of the following is True?

• A) A regressive tax rate structure imposes an increasing marginal tax rate as the tax base increases.
• B) Regressive tax structures are the most common tax rate structure.
• C) An example of a regressive tax is an excise tax.
• D) In terms of effective tax rates, a sales tax can be viewed as a regressive tax.
• E) None of the choices are correct.

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Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a good or service, the satisfaction gained from consuming additional units declines.

Concert Tickets

Tickets sold as a means to gain entry to a live performance of musical artists or bands.

Textbooks

Published materials that provide detailed information on a particular subject, often used as primary teaching tools in educational settings.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods.