Refer to the information provided in Table 19.3 below to answer the question that follows.
Table 19.3 $$\begin{array} { c c c c }
\text { Total Income }&\text { Total Taxes } & \begin{array} { c }
\text { Average Tax } \
\text { Rate }
\end{array} & \begin{array} { c }
\text { Marginal Tax } \
\text { Rate }
\end{array} \
\hline \$ 10,000 & \$ 500 & 0.050 & 0.05 \
\$ 20,000 & \$ 1,500 & 0.075 & 0.10 \
\$ 30,000 & \$ 3,000 & 0.100 & 0.15 \
\$ 40,000 & \$ 8,000 & 0.200 & 0.50 \
\hline
\end{array}$$
-Refer to Table 19.3. The tax rate structure in this example is

Question

Refer to the information provided in Table 19.3 below to answer the question that follows.
Table 19.3 $$\begin{array} { c c c c } 
\text { Total Income }&\text { Total Taxes } & \begin{array} { c } 
\text { Average Tax } \
\text { Rate }
\end{array} & \begin{array} { c } 
\text { Marginal Tax } \
\text { Rate }
\end{array} \
\hline \$ 10,000 & \$ 500 & 0.050 & 0.05 \
\$ 20,000 & \$ 1,500 & 0.075 & 0.10 \
\$ 30,000 & \$ 3,000 & 0.100 & 0.15 \
\$ 40,000 & \$ 8,000 & 0.200 & 0.50 \
\hline
\end{array}$$
-Refer to Table 19.3. The tax rate structure in this example is

Quizplus · Accepted Answer

The tax rate structure is progressive because the average tax rate increases as the total income increases, which is characteristic of a progressive tax system.

Refer to the Information Provided in Table 19 -Refer to Table 19