The Primary Function of Taxes Is to

question 79

Multiple Choice

The primary function of taxes is to

• A) Transfer command over resources from the private sector to the public sector.
• B) Increase the purchasing power of the private sector.
• C) Increase private saving.
• D) Correct inequities in the distribution of goods and services.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries of non-direct labor.

Indirect Materials

Materials used in the production process, but cannot be directly associated with a specific product.

Finished Product

A good that has completed the manufacturing process and is ready for sale to customers.