Which of the Following Is False

question 116

Multiple Choice

Which of the following is false?

• A)A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base.
• B)The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system.
• C)An example of a proportional tax is the tax on gasoline.
• D)An example of a progressive tax is the federal tax on gifts.
• E)None of the choices are correct.

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Definitions:

Output Levels

The quantity of goods or services produced by a firm, industry, or economy in a given period.

Competitive Market

An economic system where multiple firms sell similar products or services, encouraging fairness and efficiency, driven by supply and demand mechanisms.

Marginal Products

Additional outputs that result from the increment of one unit of input while holding other inputs constant, emphasizing the concept of variable productivity.

Fast Food Restaurant

A quick service eating establishment that serves affordable food items prepared and served quickly.