Given That the Government Wishes to Raise a Certain Amount

question 89

Multiple Choice

Given that the government wishes to raise a certain amount of tax revenue, individuals prefer:

• A)a 100% lump sum tax.
• B)a combination of a 70% excise tax and a 30% lump sum tax.
• C)a combination of a 30% excise tax and a 70% lump sum tax.
• D)a 100% excise tax.

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Definitions:

Utilities Expense

The cost incurred by a business for basic services such as electricity, water, gas, and sewage during an accounting period.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership value.

Liabilities

Financial obligations or debts a company owes to external parties or entities.

Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets equal liabilities plus shareholders' equity.