On Which of the Following Goods Would You Expect the Revenue

question 19

Multiple Choice

On which of the following goods would you expect the revenue generated from the imposition of a tax to be the greatest?

• A)A prescription drug ordered by your doctor
• B)Bayer aspirin
• C)An over-the-counter cough medicine
• D)A specific brand of vitamin pills
• E)Rubbing alcohol

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Definitions:

Business Computer

A computer designed for business purposes, including processing data, managing information, and supporting business operations.

Double-Declining-Balance

A method of accelerated depreciation in which an asset’s book value is decreased at double the rate of its straight-line depreciation.

Sum-Of-The-Years'-Digits Depreciation

A depreciation method that results in a more accelerated write-off of an asset than straight-line depreciation, based on a sum of the years’ digits formula.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in value over time.