Match Each Term with the Correct Statement Below

question 48

Multiple Choice

Match each term with the correct statement below.
-The result when two differently situated taxpayers are taxed differently but fairly.

• 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:

Gross National Product

The total value of all goods and services produced by a country's residents over a specified time period, plus the net income from abroad.

Domestic Goods

Products that are produced within a country's borders, as opposed to goods imported from abroad.

Third-Party Payer

An entity, often an insurance company or government program, that pays for healthcare services on behalf of the patient.

Insurance Company

A business entity that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.