If the Average Tax Rate Remains Constant as Income Changes,the

question 215

Multiple Choice

If the average tax rate remains constant as income changes,the tax is

• A) progressive.
• B) proportional.
• C) regressive.
• D) definitely fair.
• E) impossible to determine with the information given.

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Definitions:

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

Dividend Income

Income received from owning shares in a corporation, usually in the form of cash payments made to investors out of the company's profits.

Shares

Equity stakes in a corporation, representing a portion of the ownership, which entitle the holder to a share of the company's profits and assets.

Capital Gains Yield

The rise in price of an investment or asset, represented as a percentage of the investment’s initial cost.