The Difference Between a Fixed Tax and a Variable Tax

question 193

Multiple Choice

The difference between a fixed tax and a variable tax is that

• A)fixed taxes can never be changed, but variable taxes can be changed.
• B)a change in fixed taxes has no effect on aggregate demand, but a change in variable taxes has an impact.
• C)a variable tax changes when GDP changes, but a fixed tax does not change with GDP.
• D)a variable tax can be changed easily, whereas changing fixed taxes requires a constitutional amendment.

Understand the distributional effects of agricultural policies on different income groups.

Realize the significance of price elasticity in the agriculture sector.

Comprehend the changing structure of agriculture employment and its economic effects.

Identify the impact of environmental policies on agriculture.

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Definitions:

Factual Information

Data and details that are true and can be verified, not based on feelings or opinions.

Uncertain Environment

A condition in which there is a lack of predictability or stability in the external or internal environment, affecting organizational strategies and decisions.

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning or analysis.

Decision Making

The method of selecting options through recognizing a decision to be made, collecting data, and evaluating different solutions.