Taxes Will Almost Always Cause Consumer Prices to Increase

question 79

Multiple Choice

Taxes will almost always cause consumer prices to increase.How much they increase depends on

• A) how often the government collects the tax.
• B) the amount of the tax.
• C) who pays the tax out of pocket.
• D) who is legally obligated to pay the tax.
• E) the elasticities of supply and demand.

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Definitions:

Decrease in Accounts Receivable

A reduction in the amount of money owed to a business by its customers for goods or services delivered on credit.

Non-Operating Gains

Income from activities not related to a company's core operations such as profits from investments, property sales, or currency exchange.

Retirement of Notes Payable

The process of paying off or settling a debt obligation represented by promissory notes.

Cash Flows from Operating Activities

The section of a company's cash flow statement that represents the amount of money a company brings in from its regular business activities.