A tax is said to be progressive, when the marginal rate of tax is
Average tax T(Y)/Y rises when marginal tax T′(Y)>T(Y)/Y; equal rates imply proportional taxation and lower marginal implies regression locally.
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A tax is said to be progressive, when the marginal rate of tax is
Answer and explanation
Correct answer A
Average tax T(Y)/Y rises when marginal tax T′(Y)>T(Y)/Y; equal rates imply proportional taxation and lower marginal implies regression locally.
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UGC NET Economics