Refer to the Above Data

question 214

Multiple Choice

Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, the tax system:

• A)is regressive.
• B)is proportional.
• C)is progressive.
• D)may be either proportional or progressive.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability.

Year 2

Typically refers to the second year of a specific time frame or series, such as a company's second fiscal year.

Return On Investment

A metric utilized to assess an investment's efficiency or profit in comparison to its expenditure.