Table 7-2 Madison and Austin Own Cafe Ole'.Table 7-2 Lists

question 93

Multiple Choice

Table 7-2
Madison and Austin own Cafe Ole'.Table 7-2 lists the number of empanadas and tacos Madison and Austin can each make in one hour.
-Refer to Table 7-2.Select the statement that accurately interprets the data in the table.

• A)Madison has a greater opportunity cost than Austin for making tacos.
• B)Madison's opportunity cost for making tacos is less than Austin's.
• C)Austin has a greater opportunity cost than Madison for making empanadas.
• D)Austin's opportunity cost for making tacos and making empanadas are both greater than Madison's.

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Definitions:

Tax Rate Structure

The framework defining how different levels of income are taxed at various rates, often progressive, where higher income incurs higher tax rates.

Progressive

A tax system in which the tax rate increases as the taxable amount increases, placing a larger burden on those who have higher incomes.

Proportional

A tax system where the tax rate remains constant as the taxable amount increases.

Regressive

A tax system where the tax rate decreases as the taxable amount increases, leading to lower-income individuals bearing a proportionally higher tax burden.