Which of the Following Statements Concerning a Regressive Tax Rate

question 62

Multiple Choice

Which of the following statements concerning a regressive tax rate structure is true?

• A) A regressive tax rate structure is justified by the tax policy of distributive justice.
• B) A regressive rate structure is justified by the theory of the declining marginal utility of income.
• C) Under a regressive rate structure, the average tax rate for high-income taxpayers is less than the marginal tax rate.
• D) None of the statements are true.

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Definitions:

One-way ANOVA

A statistical test that assesses whether there are statistically significant differences between the means of three or more unrelated groups.

T-test

A statistical test used to compare the means of two groups or to compare a sample mean to a known value, assessing whether differences are statistically significant.

F-test

A statistical test used to determine if there are significant differences between the variances of two or more groups.

Rejection Region

Rejection region is the range of values in hypothesis testing that leads to the rejection of the null hypothesis if the test statistic falls within this range.