Which of the Following Statements About a Progressive Tax Rate

question 54

Multiple Choice

Which of the following statements about a progressive tax rate structure is false?

• A) Progressive rates increase as the tax base increases.
• B) Progressive rates reflect the theory of the declining marginal utility of income.
• C) The federal income tax has always used a progressive rate structure.
• D) Progressive rates result in greater vertical equity than a proportionate rate.

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Definitions:

Path-goal Theory

A leadership theory that suggests a leader's effectiveness is based on their ability to clear paths for their followers' goals, through the use of different leadership styles.

Subordinate Motivation

Subordinate motivation refers to the driving forces that influence the willingness and energy of employees to follow and actively support their leaders or managers.

Work Setting

The physical and social environment in which people perform their jobs, including the workplace layout, culture, and dynamics.

Expectancy Theory of Motivation

A psychological theory suggesting that individuals are motivated to act in certain ways based on the expected results of their actions.