Which of the Following Is True

question 78

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:

First-Order Regression

A linear regression analysis that involves a single independent variable to predict the outcome of a dependent variable.

Unit Increase

A one-unit increment in the value of an independent variable in a mathematical function or experiment.

First-Order Model

A mathematical or statistical model that represents linear relationships between variables using first-degree equations.

Unit Increase

It refers to the increment by a single unit in the independent variable and observing the effect on the dependent variable.