📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A regressive tax structure implies that the average tax

    rate:
    A Increases with income. Correct Answer Incorrect Answer
    B Decreases with income. Correct Answer Incorrect Answer
    C Is constant regardless of income. Correct Answer Incorrect Answer
    D Is zero for low incomes. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    In a regressive tax, the tax as a percentage of income falls as income rises (e.g., a flat sales tax).

    Practice Next
    More Research Questions
    ask-question