Recall Application 1, "The Impact of Tariffs on the Poor

question 171

Multiple Choice

Recall Application 1, "The Impact of Tariffs on the Poor," to answer the following questions:
-What proof does the application use to illustrate that tariffs hurt the poor more than the rich?

• A) The total amount of dollars paid by the poor in the form of import tariffs is larger than the rich.
• B) The amount of dollars paid by the poor in the form of income taxes is higher with poor individuals than rich individuals.
• C) The proportion of tariffs paid relative to expenditures is lower on the poor than the rich.
• D) The proportion of tariffs paid relative to expenditures is higher on the poor than the rich.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Net Income

The sum a company retains as earnings after deducting taxes and expenses from its total revenue.

Profit Margin Ratio

A financial metric that measures the extent to which a company or business activity makes money, expressed as a percentage of revenue.

Net Income

The company's earnings post all deductions for expenses and taxes from its income.