In a Progressive Tax System,if a Person Moves from One

question 56

Multiple Choice

In a progressive tax system,if a person moves from one income bracket to a higher income bracket:

• A) both the marginal tax rate and average tax rate will be higher.
• B) both the marginal tax rate and average tax rate will be lower.
• C) the marginal tax rate will be lower and the average tax rate will be higher.
• D) the marginal tax rate will be higher and the average tax rate will be lower.

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Definitions:

Propositions

Statements or assertions that express judgments or opinions that can potentially be proven true or false.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Frugality

The quality of being economical with resources or expenditure; practicing restraint in the use of materials and funds.

Cognitive Dissonance

A psychological state of discomfort arising from holding two or more conflicting beliefs, values, or attitudes, leading to behavior change or attitude adjustment.