Which of the Following Terms Refers to the Ability of a Method

question 15

Multiple Choice

Which of the following terms refers to the ability of a method of taxation to keep up with inflation and economic growth?

• A) vertical equity
• B) buoyancy
• C) redistributive effects
• D) progressive taxation

---

Definitions:

Actual Sales

The total revenue a company generates from selling its goods or services, minus any returns or refunds.

Fixed Expenses

Regularly occurring costs that remain constant in total regardless of changes in activity within a relevant period.

Contribution Margin

The difference between a company's sales revenue and its variable costs, serving as a measure of the profitability of individual products.

Monthly Unit Sales

The total number of units of a product sold by a company in a given month, often used to track sales trends and forecast demand.