Question 1
If the marginal tax rate equals the average tax rate, the tax would be
◦ proportional.
◦ regressive.
◦ progressive.
◦ uniform.
Question 2
Which of the following statements is
true?
◦ Economists believe that average tax rates have a greater influence on behavior than marginal tax rates.
◦ Economists believe that marginal tax rates have a greater influence on behavior than average tax rates.
◦ Economists believe that marginal and average tax rates influence behavior to the same extent.
◦ Economists believe that neither marginal nor average tax rates have any influence on behavior.