With a Lump-Sum Tax,how Is the Average Tax Rate Evaluated

question 45

Multiple Choice

With a lump-sum tax,how is the average tax rate evaluated

• A)The average tax rate is always equal to zero.
• B)The average tax rate is always less than the marginal tax rate.
• C)The average tax rate falls as income rises.
• D)The average tax rate rises as income rises.

---

Definitions:

Symbols

Characters or graphical representations used to represent objects, quantities, or concepts in various fields including mathematics, physics, and more.

Ratio Level

The highest level of measurement that describes data with a natural zero point and equal intervals, allowing for the computation of ratios.

Absolute Zero

A point on a scale where there is a complete absence of the measured phenomenon, allowing for ratio comparisons.

Ordinal Level

A measurement scale that categorizes data while preserving the order of the categories but not assuming equal intervals between them.