If Taxes Are a Function of Income, Then the AE

question 189

Multiple Choice

If taxes are a function of income, then the AE function is

• A) flatter than if taxes are a lump-sum amount.
• B) steeper than if taxes are a lump-sum amount.
• C) vertical.
• D) downward sloping.

---

Definitions:

Privileged

Refers to having special rights, advantages, or immunities that are not available to everyone.

Representation Clause

A contractual provision where one party guarantees certain facts or conditions to be true or to occur.

Exculpatory Clause

An exculpatory clause is a contract provision that absolves one party from liability for harm or damages incurred by the other party.

Liability Clause

A provision in a contract that outlines the responsibilities and liabilities of each party involved in the agreement.