A Tax That Has the Same Average Rate at All

question 3

Multiple Choice

A tax that has the same average rate at all levels is

• A) a proportional tax.
• B) a regressive tax.
• C) a marginal tax.
• D) a sales tax.
• E) an efficient-price tax.

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Definitions:

Positing

involves placing something firmly or putting forward an assertion, belief, or theory for consideration.

Meaningfully Shared Characteristics

Traits or features that are held in common among a group or category of things, providing significant insight into their nature or behavior.

Mass Affluent

A demographic group characterized by their substantial disposable income, though not wealthy enough to be considered rich by traditional standards.

Investable Assets

Financial assets or securities that individuals or institutions can purchase in order to generate returns.