All Scientific Models, Including Economic Models, Simplify Reality in Order

question 99

True/False

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

---

Definitions:

Income Tax

A government levy on individuals' or corporations' earnings.

Marginal Tax Rate

The rate of tax applied to the last dollar of income, indicating how much of any additional income will be taken as tax.

Lump-Sum Tax

A tax that is a set amount, no matter the taxpayer's income level or economic activity.

Proportional Tax

A taxation framework where the same rate is consistently applied to everyone, with no variation based on the amount of income.