________ Is a Tax on a Stock, While ________ Is

question 66

Multiple Choice

________ is a tax on a stock, while ________ is a tax on a flow.

• A) A payroll tax; a local property tax
• B) A local property tax; a tax on your salary
• C) A retail sales tax; a payroll tax
• D) A tax on your salary; a retail sales tax

---

Definitions:

Marginal Revenue Curve

Illustrates how marginal revenue changes as the quantity of output sold changes.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and no barriers to entry or exit.

Monopolistic Firm

A company that possesses significant market power, allowing it to set higher prices compared to a perfectly competitive market.

Flatter

Describes a structure or hierarchy that has fewer levels, often leading to a broader span of control and potentially more decentralized decision-making.