Which of the Following Ideas Is the Most Plausible

question 40

Multiple Choice

Which of the following ideas is the most plausible?

• A)Tax revenue is more likely to increase when a low tax rate is increased than when a high tax rate is increased.
• B)Tax revenue is less likely to increase when a low tax rate is increased than when a high tax rate is increased.
• C)Tax revenue is likely to increase by the same amount when a low tax rate is increased and when a high tax rate is increased.
• D)Decreasing a tax rate can never increase tax revenue.

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Definitions:

Salespersons Bonuses

Additional compensation awarded to sales employees based on their performance.

Selling Expense

Costs associated with the marketing and selling of a company's products or services, including advertising and sales personnel expenses.

Period Cost

Costs that are not directly tied to the production of goods and are expensed within the period they occur.

Construction Contractor

A person or company that agrees to supply services or perform work at a specified price, especially for construction projects.