Match Each Term with the Correct Statement Below

question 24

Multiple Choice

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

---

Definitions:

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding.

Interest

Payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate.

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.