Exhibit 1-2 -In Exhibit 1-2,when Y Is Greater Than 12,the

question 54

Multiple Choice

Exhibit 1-2
-In Exhibit 1-2,when y is greater than 12,the

• A)value of x is larger on curve A than on curve B
• B)value of x is smaller on curve A than on curve B
• C)value of x is the same on curve A as on curve B
• D)slope of line A is negative
• E)slope of line B is positive

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Definitions:

Tax Base

The measure or value upon which a tax is levied.

Incidence

In economics, the allocation or distribution of a tax's economic burden between buyers and sellers.

Tax Rate Structure

The percentage of a tax base that must be paid in taxes—25 percent of income, for example.

Tax Base

The tax base is the total amount of income, property, assets, or other wealth that is subject to taxation by a taxing authority.