In the Following Situation the Tax System Is

question 115

Multiple Choice

In the following situation the tax system is

• A)progressive through all levels of income
• B)proportional throughout all levels of income
• C)regressive throughout all levels of income
• D)based on the benefits-received principle
• E)there is insufficient information to answer the question

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the open market.

Dividend

A share of a company's profits distributed to its shareholders, usually on a regular basis, as determined by the board of directors.

Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

Dividends per Share

The amount of dividend a company pays out to its shareholders for each share owned.