Indicate Which of the Following Statements Concerning the Following Tax

question 149

Multiple Choice

Indicate which of the following statements concerning the following tax rate structures is/are correct.
?
?
$$\begin{array} { c c c } & \text { When Income } & \text { Total Tax } \\&\text { Equals } &\text { Equals } \\\text { Structure \#1 } & 10,000 & 600 \\& 100,000 & 5,000 \\\text { Structure \#2 } & 15,000 & 900\\& 75,000 & 4,500 \\\\\text { Structure \#3 } & 13,000 &975 \\& 86,000 & 6,600 \\\end{array}$$
I.Tax Structure #1 is proportional.
II.Tax Structure #1 is regressive
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive
?

• A)Only statement I is correct.
• B)Only statement III is correct.
• C)Statements I and II are correct.
• D)Statements II and IV are correct.
• E)Statements I, II, and IV are correct.

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Definitions:

Edward Denison

An American economist known for his work on measuring the sources of economic growth.

Productivity Growth

An increase in the output of goods and services per unit of input, reflecting improvements in efficiency, technology, or processes.

Productivity

A measure of the efficiency of production, often quantified as the amount of output per unit of input.

Information Phase

A stage in a process where data is collected, analyzed, and used to make decisions or resolve uncertainties.