If the Marginal Tax Rate Is Equal to the Average

question 60

Multiple Choice

If the marginal tax rate is equal to the average tax rate as taxable income increases, the tax structure is

• A)regressive.
• B)proportional.
• C)progressive.
• D)unfair.

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Definitions:

Threshold

The point at which a stimulus is strong enough to be detected or to cause a response.

Difference Threshold

The smallest detectable difference between two stimuli or the minimum change in a stimulus that can be correctly perceived as differing from a reference stimulus.

Just Noticeable Difference

The minimum difference in stimulus intensity that a specific sense (like sight, hearing, taste, touch, or smell) can detect.

Optic Nerve

The nerve that transmits sensory information from the eye to the brain.