A Progressive Income Tax Is Defined as a Tax for Which

question 139

Multiple Choice

A progressive income tax is defined as a tax for which

• A) total taxes paid increase with the level of income.
• B) total taxes paid are independent of the level of income.
• C) the average tax rate increases with the level of income.
• D) the average tax rate decreases with the level of income.

---

Definitions:

Insurance Premiums

The amount paid for insurance policies, covering risks over a period.

Direct Materials

Primary components used in the manufacturing of products, which are directly traceable to the finished product.

Electricity

A form of energy resulting from the existence of charged particles, widely used for lighting, power, and other applications.

Assembly Worker

An individual employed in the manufacturing sector tasked with putting together components of products on an assembly line.