Which Statement Is Correct with Respect to Marginal and Average

question 122

Multiple Choice

Which statement is correct with respect to marginal and average tax rates under a progressive tax structure?

• A)At very high levels of taxable income,a taxpayer's marginal and average tax rates will be the same.
• B)At very low levels of taxable income,a taxpayer's marginal and average tax rates will be the same.
• C)For most taxpayers,the average tax rate is larger than the marginal tax rate.
• D)Generalizations cannot be made.The question can only be answered with reference to the tax situation of a specific taxpayer.

---

Definitions:

Balance Impairment

A condition affecting one's stability and spatial orientation, often leading to difficulty in maintaining upright posture.

Basal Nuclei

Groups of neurons located deep within the cerebral hemispheres that are involved in the control of movement.

Circular Speech

A communication pattern where the speaker repeats ideas in a loop without reaching a conclusion.

Uncontrolled Rage

An extreme and uncontrollable emotional state of anger that can lead to aggressive behaviors and potentially harm to oneself or others due to a lack of inhibition or impulsivity.