The marginal tax rate for a lump-sum tax

A) is always positive.
B) is always negative.
C) is zero.
D) can take on any value but must be greater than the average tax rate.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the proportion of any additional dollar of income that will be taken as tax.

Lump-Sum Tax

A tax that is a fixed amount, not dependent on the taxpayer's income level or assets' value.

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total taxes paid by the total taxable income.