With a Lump-Sum Tax,the Average Tax Rate for High Income

question 322

Multiple Choice

With a lump-sum tax,the average tax rate for high income taxpayers will be

• A)the same as the average tax rate for low income taxpayers.
• B)lower than the average tax rate for low income taxpayers.
• C)higher than the average tax rate for high income taxpayers.
• D)Any of the above could be true under a regressive tax system.

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Definitions:

Average Cost

The total cost of production divided by the number of goods or services produced, often used to determine profitability.

Maximize Profit

The process or strategy by which a business attempts to achieve the highest possible profit from its operations, often by increasing revenue, reducing costs, or both.

Business Goal

Objectives or desired outcomes that an organization aims to achieve over a specific period through its operations.

Minimize Cost

A strategy or objective aimed at reducing expenses to the lowest possible level while achieving the desired outcome.