The Grid Approach

question 4

Multiple Choice

The grid approach

• A) is a variation of SAILS.
• B) assumes that the raw materials sources and finished goods markets are fixed.
• C) assumes that the raw materials sources and finished goods markets are variable.
• D) deals with multiple locations.

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Definitions:

Corporate Profits Tax

A tax imposed on the net income of a corporation, calculated after operational and capital expenses have been deducted.

Corporate Sector

Refers to the segment of an economy comprised of private and publicly traded corporations, involved in commercial and industrial activities.

Noncorporate Sector

Parts of the economy that are not incorporated as businesses, including households, sole proprietorships, and some partnerships.

Excess Burden

The amount by which the burden of a tax exceeds the total revenue collected. Also called deadweight loss.