Use the Table for the Question(s)below

question 80

Multiple Choice

Use the table for the question(s) below.
Consider the following historical top federal tax rates in the United States:
Personal Tax Rates
-In 2000,assuming an average dividend payout ratio of 50%,the effective tax rate for equity holders was closest to:

• A)69%.
• B)65%.
• C)55%.
• D)30%.

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Definitions:

Volunteer-Donor System

A system in which goods, services, or time are given by volunteers or donors without financial compensation.

Market-Based System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Human Organs

Parts of the human body that perform vital functions necessary for life, such as the heart, liver, and kidneys, which can sometimes be medically transplanted.

Government Tax

A compulsory financial charge imposed by a government on individuals, businesses, or goods to fund public services and infrastructure.