Indexing Federal Income Tax Rates to Inflation Would Cause the Elasticity

question 31

Multiple Choice

Indexing federal income tax rates to inflation would cause the elasticity of tax revenue with respect to GDP

• A) to increase because it would allow elasticity to more accurately reflect the accelerating effect of inflation.
• B) to do nothing because tax brackets would simply be enlarged with inflation and not associated with lower tax rates.
• C) to do nothing because the bulk of tax revenue collected by the federal government is generated by a combination of taxes, the net effect of which is roughly proportional to GDP.
• D) to diminish the elasticity of tax revenue with respect to GDP because tax revenue would no longer increase faster than nominal GDP owing to inflation.
• E) none of the above.

Understand the characteristics and benefits of organic and mechanistic organizational designs.

Recognize the impact of organizational structure on management and employee behavior.

Identify how environmental uncertainty influences organizational structure.

Define and differentiate between span of control, delegation, and decentralization in organizational contexts.

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Definitions:

Magma Rise

The upward movement of molten rock or magma from the Earth's mantle towards the crust, often leading to volcanic activity.

Pressure Decreases

A phenomenon where the force exerted by a fluid per unit area decreases, commonly observed with increasing altitude in the atmosphere.

Uplifted

The process of raising a part of the earth’s crust by tectonic forces, leading to the formation of mountains and plateaus.

Solidifies

The process of becoming firm or hard, or changing from a liquid or gas to a solid state.