A Major Reason Why State and Local Governments Are Constrained

question 33

Multiple Choice

A major reason why state and local governments are constrained in their ability to generate revenue through taxation is

• A)an insufficient tax base.
• B)competition from other states and localities.
• C)federal government restrictions on state and local income tax rates.
• D)judicial restrictions on state and local income tax rates.
• E)inadequate enforcement staff.

Recognize the role of market demand and competition in setting pricing strategies.

Understand the use of target pricing and its impact on pricing decisions.

Identify the practices and implications of price discrimination through yield management.

Understand the principles and applications of various pricing strategies including cost-plus pricing, standard markup pricing, and target profit pricing.

---

Definitions:

Process-layout Planning

The arrangement of physical facilities such as machinery and equipment within a factory to optimize workflow.

Material Handling Costs

Expenses incurred in the movement, protection, storage, and control of materials throughout the manufacturing process.

Fixed-position Layout

A layout design where the product remains stationary and workers, materials, and equipment are moved as needed to the product’s location, often used for large or bulky items.

Highway Tunnel

A type of road passage that runs underneath an obstacle or terrain feature, such as a mountain, water body, or city.