Social Security Is Considered a Regressive Tax Because __________

question 35

Multiple Choice

Social Security is considered a regressive tax because __________.

• A) people are more likely to be in ill health
• B) it takes a larger percentage from people with lower incomes
• C) long-term care expenses are universally paid by Obamacare
• D) the government pays it for the citizens

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Definitions:

Break-Even Revenue

The amount of income needed to cover all operating expenses, with no profit or loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Profit

The financial gain obtained when the revenue from selling goods or services exceeds the total cost of producing them.