Question

The ultimate economic burden of a tax is best captured by: A. the marginal tax rate. B. the effective tax rate. C. the average tax rate. D. the proportional tax rate. E. None of the choices are correct.

Answer 1

Answer:

B

Explanation:

The ultimate economic burden of a tax is best captured by the effective tax rate, which is the average rate at which an individual is taxed on earned income or at which a corporation is taxed on profits before tax.