As a Large Proportion of the Population Retire in the Next

question 78

Multiple Choice

As a large proportion of the population retire in the next few years, what would happen to the federal revenue?

• A) It would decrease, as social security tax revenues decrease.
• B) It would decrease, as estate and excise taxes decrease.
• C) It would increase, as corporate tax revenues increase.
• D) It would increase, as social security payments increase.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent, salaries, and insurance premiums.

Selling Price

The cost incurred by the customer for acquiring a product or service.

Variable Production Costs

Expenses that vary directly with the volume of production or sales, like direct labor and raw materials.

Fixed Monthly Cost

Regular expenses that do not fluctuate with production volume or sales, such as rent, salaries, and insurance, billed on a monthly basis.