If a Tax System Contains Some Important Taxes That Are

question 60

Multiple Choice

If a tax system contains some important taxes that are regressive,substantial progressivity in other taxes would be required in order to achieve

• A)a negative income tax.
• B)proportionality in the overall tax system.
• C)equity in the overall tax system.
• D)efficiency in the overall tax system.
• E)a flat- rate tax.

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Definitions:

Cost Behavior

The study of how specific costs respond to changes in the level of business activity, categorized into fixed, variable, and mixed costs.

High-Low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Fixed Cost

Costs that remain unchanged regardless of the level of production or business activity within a certain range.

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.