What Does It Mean When a Tax Code Is Convex

question 7

Multiple Choice

What does it mean when a tax code is convex?

• A) It is a flat tax and does not vary as taxable income varies.
• B) It is regressive and taxes lower incomes more.
• C) Is proportional and the rate always taxes at proportional income equivalents.
• D) It imposes a higher rate on higher incomes and a lower rate on lower incomes.

---

Definitions:

Standard Deviation

An index quantifying how much data values spread out or differ from each other.

Standard Deviation

An indicator of the degree of spread or variability within a dataset, showing how significantly the values deviate from the average.

Water Consumption

The amount of water ingested by living organisms, particularly humans, to maintain health and sustain life.

Standard Deviation

A metric that quantifies the spread or variability within a dataset, reflecting the extent to which the numbers differ from their mean.