If You Wanted to Compute the Correlation Between Two Ordinal-Level

question 15

Multiple Choice

If you wanted to compute the correlation between two ordinal-level variables, which type of correlation should you use?

• A) Point biserial
• B) Phi
• C) Spearman rank
• D) Pearson

Recognize the potential trade-offs between equity and efficiency in tax systems.

Identify the principles of tax design that aim to minimize the economic burden.

Understand how different income levels are taxed under various tax systems.

Analyze the impact of taxation on government revenue and economic behavior.

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Definitions:

Net Investment Cost

The total cost associated with making an investment after subtracting any incentives or credits.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on the income or profits generated.

CCA Method

The CCA (Capital Cost Allowance) method is a tax deduction approach allowing Canadian businesses to claim depreciation on tangible property over its useful life as part of calculating taxable income.

CCA Tax Shield

A deduction that allows businesses to depreciate the cost of capital assets over time against their taxable income, reducing the tax payable.