Which of the Following Will Not Increase When Net Taxes

question 62

Multiple Choice

Which of the following will not increase when net taxes decrease?

• A)Saving
• B)Disposable income
• C)Consumption
• D)Government expenditure
• E)GDP

Understand the concept of equity and debt financing in a business context.

Apply concepts of percentage change to demographic and economic indicators.

Understand and apply concepts of speed and efficiency in work-related contexts.

Understand how to calculate the percentage by which revenue exceeds operating expenses given the percentage of operating expenses to revenue.

---

Definitions:

Net Income

The total revenue minus total expenses, indicating the profitability of a company over a specific period.

Contribution Margin Ratio

The ratio of Contribution Margin to Sales Revenue, measuring the percentage of each sales dollar available to cover fixed costs and profit.

Fixed Costs

Unvarying costs that do not fluctuate with changes in production or sales levels, such as office rent, staff wages, and insurance coverage.

Break-Even Point

The point where the amount produced or sold matches the overall expenses, leading to neither a profit nor a loss.