Which of the Following Statements About Tax Rate Structures Is

question 67

Multiple Choice

Which of the following statements about tax rate structures is true?

• A)Regressive rate structures are illegal in the United States.
• B)A tax with a graduated rate structure must be either regressive or progressive.
• C)A proportionate rate structure is the only structure resulting in vertical equity.
• D)None of the above is true.

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, usually showing frequency of data intervals.

Median

The middle value in a sorted list of numbers, effectively dividing the dataset into two halves.

Skewed

Describes a distribution of data that is not symmetrical, where one tail is longer or fatter than the other.

Standard Deviation

An indicator of how spread out or scattered a collection of numbers is, showing the degree to which these numbers differ from their average value.