With a Regressive Tax System, as the Level of Income

question 192

Multiple Choice

With a regressive tax system, as the level of income increases in an economy, the average tax rate will:

• A)increase.
• B)decrease.
• C)remain constant.
• D)either increase or decrease.

---

Definitions:

Intermediate Product

Goods used as inputs in the production of final products, not sold directly to end consumers.

Transfer Price

The price at which goods or services are sold between divisions within the same company.

Division Producing

A specialized unit within a company focused on manufacturing or outputting specific products or services.

Intermediate Product

An intermediate product refers to a good or service that is utilized in the production process of another good or service, rather than being sold directly to consumers.