Answer the Question. -Suppose That of the Total Amount Collected in Taxes by in Taxes

question 1

Multiple Choice

Answer the question.
-Suppose that of the total amount collected in taxes by the U.S. government, 25% of it comes from families with incomes greater than $200,000.
If taxes are increased by 5% across the board, which of the following statements will be true?

• A)5% of the additional revenue will come from each income group.
• B)The total amount collected from families with incomes greater than $200,000 will increase by 25%.
• C)A family with an income greater than $200,000 will have to pay 25% more in taxes.
• D)25% of the additional revenue collected by the government will come from families with incomes greater than $200,000.

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Definitions:

Motivational Effects

The impact of various factors, such as incentives or goal setting, on an individual's willingness to perform or achieve tasks.

Unfavourable Price Variance

The difference between the actual price paid for something and its standard cost, when the actual price is higher.

Price Variance

The difference between the actual cost of a good or service and its standard or expected cost.

Product Costs

The total costs incurred to create a product, which include direct materials, direct labor, and manufacturing overhead.