If the (Average)tax Rate Falls by 10% and as a Result

question 9

Multiple Choice

If the (average) tax rate falls by 10% and as a result the tax base rises by 8%,then tax revenues will

• A) rise.
• B) decline.
• C) remain unchanged.
• D) There is not enough information given to answer this question.

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Definitions:

Z Scores

An indicator that quantifies the distance of a particular value from the mean of a dataset, using standard deviations as the unit of measure.

Z Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations.

Mean

The average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of the numbers.