Which of the Following Is Not an Example of a Tax

question 14

Multiple Choice

Which of the following is not an example of a tax causing an economic dislocation?

• A) A high income individual chooses to invest in tax free municipal bonds over corporate bonds which have a higher advertised rate.
• B) A car dealership holds a gigantic sale to reduce its inventory before property taxes are assessed
• C) High income individuals pay a greater amount of taxes than do low income people, but high income individuals are not guaranteed more public services.
• D) None of the above-all are examples of dislocation.

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Definitions:

Finished Goods

Items that are finished with the production phase but are still awaiting sale or delivery to consumers.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Work in Process Inventory

Goods that are partially completed in manufacturing but not yet ready for sale, reflecting a stage between raw materials and finished goods.

Supplies Inventory

Items held in stock by a business, such as office supplies or maintenance materials, not directly used in manufacturing but necessary for operations.