Which of the Following Is an Example of a Progressive

question 131

Multiple Choice

Which of the following is an example of a progressive tax?

• A) The excise tax on cigarettes.
• B) The federal tax on gasoline.
• C) The federal personal income tax.
• D) All of the above.

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Definitions:

Price Earnings Ratio

A valuation metric that compares a company's share price to its per-share earnings, used to evaluate if a stock is over or under-valued.

Risk-adjusted Cost

A financial measure that adjusts the costs of an investment by considering the risk involved, accounting for the riskier nature of some investments compared to others.

Common Stock

A form of corporate equity ownership, a type of security representing units of ownership or equity in a corporation.

Zero-growth Perpetuity

A type of investment that pays a fixed amount of cash flows indefinitely, with no expectation of growth in the payments.