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Which of the Following Statements Is False with Respect to Marginal

Question 133

Multiple Choice

Which of the following statements is false with respect to marginal and average tax rates?


A) For taxable income greater than the lowest tax bracket,the average rate is always greater than the lowest marginal rate and less than the highest marginal rate.
B) The marginal rate is the proportion of tax paid on the next dollar of taxable income.
C) For most taxpayers,the average rate is larger than the marginal rate.
D) The average rate is the percentage of tax paid on the entire amount of taxable income.

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