Which of the Following Is True Regarding Net Taxes

question 19

Multiple Choice

Which of the following is true regarding net taxes?

• A)The level of net taxes varies directly with the level of transfer payments.
• B)The level of net taxes varies inversely with the level of taxes.
• C)Net taxes must always be less than zero.
• D)Net taxes increase when income tax rates are slashed.
• E)Net taxes rise when welfare benefits are cut.

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Definitions:

Variance

A statistical measure that represents the extent to which a set of numbers varies from the average of that set.

Probability

The measure or estimation of how likely it is that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Crashing

A project management technique used to shorten the duration of a project by increasing resources for critical activities, typically at increased costs.