Exhibit 14-1 -If the Average Tax Rate Is the Same for All

question 84

Multiple Choice

Exhibit 14-1
-If the average tax rate is the same for all levels of income, the tax is called a

• A)progressive tax.
• B)regressive tax.
• C)sales tax.
• D)proportional tax.
• E)flat tax.

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Definitions:

Fertility Rate

The average number of children born to a woman over her lifetime within a specific population.

Demographic Transition Theory

Explains how changes in fertility and mortality affected population growth from preindustrial to postindustrial times.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, leading to urbanization and increased technology.

Preindustrial Cities

Urban areas that existed before the widespread use of industrial machinery and the industrial revolution, characterized by simpler economic and social structures.