When Two Variables Move in the Same Direction,the Curve Relating

question 52

Multiple Choice

When two variables move in the same direction,the curve relating them is

• A)upward sloping,and we say the variables are positively related.
• B)upward sloping,and we say the variables are negatively related.
• C)downward sloping,and we say the variables are positively related.
• D)downward sloping,and we say the variables are negatively related.

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Definitions:

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total tax paid by the total income.

Total Income

The sum of all earnings obtained by an individual, household, or firm, including wages, salaries, profits, rents, and other forms of revenue.

Tax Base

The total amount of assets or income that can be taxed by a government, forming the foundation of its revenue.

Progressive Tax

A tax system in which the tax rate increases as the taxable income increases, placing a larger financial burden on wealthier individuals.