Which of the Following Statements About Taxes Is True

question 52

Multiple Choice

Which of the following statements about taxes is true?

• A) They benefit many of the consumers in the market.
• B) They are sometimes used to correct market failures.
• C) They are sometimes used to transfer surplus from producers to consumers.
• D) They are sometimes used to transfer surplus from consumers to producers.

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Definitions:

Performance Appraisal

A systematic evaluation of an employee's job performance and productivity in relation to pre-established criteria and objectives.

Direct Material Standards

Established benchmarks for the cost and quantity of materials required for production processes.

Direct Material Price Variance

Direct material price variance is the difference between the actual cost of materials used in production and the expected (or standard) cost, indicating how effectively a company manages its resource costs.

Actual Production

Refers to the quantity of goods that have been produced within a given time frame, as opposed to planned or theoretical production levels.