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

Question 1

Multiple Choice

Refer to the information provided in Table 19.2 below to answer the question that follows.
Table 19.2  Total Income Total Taxes  Average Tax  Rate  Marginal Tax  Rate $10,000$1,0000.10.1$20,000$2,0000.10.1$30,000$3,0000.10.1$40,000$4,0000.10.1\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 & \$ 1,000 & 0.1 & 0.1 \\\$ 20,000 & \$ 2,000 & 0.1 & 0.1 \\\$ 30,000 & \$ 3,000 & 0.1 & 0.1 \\\$ 40,000 & \$ 4,000 & 0.1 & 0.1 \\\hline\end{array}
-Refer to Table 19.2. The tax rate structure in this example is


A) proportional.
B) progressive.
C) regressive.
D) marginal.

Correct Answer:

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