If the Marginal Tax Rate Is Equal to the Average

question 60

Multiple Choice

If the marginal tax rate is equal to the average tax rate as taxable income increases, the tax structure is

• A)regressive.
• B)proportional.
• C)progressive.
• D)unfair.

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Definitions:

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Short Run

A period in economics during which some factors of production are fixed, making it impossible to change the level of output quickly.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Expand

To increase in size, number, or scope, such as a business growing its operations or a market increasing its reach.