The Difference Between Gross Investment and Net Investment Is

question 108

Multiple Choice

The difference between gross investment and net investment is

• A)depreciation.
• B)inflation.
• C)initial capital.
• D)consumption.

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Definitions:

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, indicating the impact of each additional dollar of income on taxes owed.

Additional Income

Extra earnings obtained beyond the regular sources of income or revenue.

Proportional Tax

A tax whose burden is the same proportion of income for all households.

Regressive Tax

A tax whose burden, expressed as a percentage of income, falls as income increases.