When the Tax Rate Is Constant When a Person's Income

question 18

Multiple Choice

When the tax rate is constant when a person's income rises, the tax is a:

• A) regressive tax.
• B) poll tax.
• C) progressive tax.
• D) constant tax.
• E) proportional tax.

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Definitions:

Residual

The difference between observed values and the expected values in a statistical model, indicating the error or deviation from the predicted model outcome.

R Squared

A statistical measure of how close the data are to a fitted regression line, indicating the proportion of variance in the dependent variable explained by the independent variable(s).

Electricity Usage

The amount of electrical energy consumed by a household, organization, or area within a specific period.

Linear Model

A statistical model that assumes a linear relationship between the input variables (predictors) and a single output variable.