Which of the Following Statements Is True with Respect to Marginal

question 21

Multiple Choice

Which of the following statements is true with respect to marginal and average tax rates under a progressive tax structure?

• A)Marginal rates are always larger than average rates.
• B)Marginal rates are always smaller than average rates.
• C)Average rates can only be calculated for taxpayers with income over $100,000.
• D)Average rates are never more than marginal rates.

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Definitions:

Lettuce

A leafy green vegetable commonly used in salads and other dishes for its crisp texture and mild, slightly bitter taste.

Kitchen Debate

A series of impromptu exchanges between U.S. Vice President Richard Nixon and Soviet Premier Nikita Khrushchev in 1959, symbolizing the ideological competition between the U.S. and the USSR during the Cold War.

Nikita Khrushchev

A Soviet statesman who led the Soviet Union during part of the Cold War as the First Secretary of the Communist Party of the Soviet Union from 1953 to 1964 and as Chairman of the Council of Ministers from 1958 to 1964.