Suppose Taxes Are Levied in the Following Way

question 74

Multiple Choice

Suppose taxes are levied in the following way.No individual pays any taxes on the first $10 000 of their income.And for every dollar earned above this amount,all individuals pay 20% in taxes.This income-tax system is

• A)regressive.
• B)progressive.
• C)indexed.
• D)proportional.
• E)an accurate description of the Canadian system.

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Definitions:

Ratios

Quantitative metrics calculated from financial statements to evaluate various aspects of a company's performance or financial health.

Turnovers

The rate at which inventory or assets are sold and replaced or employees leave a company and are replaced over a given period.

Vertical Analysis

A method in financial analysis where each entry in a set of financial statements is listed as a percentage of another item, typically used for income statement and balance sheet analysis to show relative proportions.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.