Part 2 - Need correct answers,

The percentage of additional income that will have to be paid in tax is an individual's _____.

a.marginal tax rate

b.average tax rate

c.proportional tax rate

d.flat tax rate

C

For a tax to be successful, the tax base must be _____.

a.easy to measure and monitor

b.large

c.inelastic

d.able to expand in times of crisis

A

_____ is determined by subtracting exemptions and deductions from total income.

a.Adjusted gross income

b.Taxable income

c.Tax base

d.Disposable income

A

Items subtracted from tax liability are called _____.

a.tax credits

b.tax deductions

c.tax exemptions

d.tax exclusions

B

The benefit of tax deferred savings accounts is_____.

a.that it helps avoid some of the double taxation of saving

b.that it helps taxpayers avoid bracket creep

c.that it increases government tax revenue in the long run

d.that it stimulates aggregate demand