Match Each Term with the Correct Statement Below

question 37

Multiple Choice

Match each term with the correct statement below.
-The tax rate obtained by dividing total tax liability by taxable income.

• A)Average tax rate
• B)Effective tax rate
• C)Horizontal equity
• D)Marginal tax rate
• E)Progressive rate structure
• F)Proportional rate structure
• G)Regressive rate structure
• H)Tax avoidance
• I)Tax evasion
• J)Vertical equity

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Definitions:

Housing Prices

The amount of money required to purchase residential properties, which fluctuates based on location, demand, and other factors.

Dream House

Idealized or perfect residential property that one aspires to live in, often customized or having specific desirable features.

Cost

The amount of money or resources expended to produce or acquire a product or service.

Compounded Annually

The method of computing interest that includes both the original amount invested and the interest already earned on that amount each year.