If the Income Tax System Were Indexed, a Person Whose

question 2

Multiple Choice

If the income tax system were indexed, a person whose nominal income went up from $30,000 to $33,000 in a year when the price index rose by 10 percent would pay

• A)no increases in nominal income taxes.
• B)no increases in real income taxes.
• C)lower taxes in both real and nominal terms.
• D)higher taxes in both real and nominal terms.

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Definitions:

Capacity Alternatives

Different options or strategies a business may consider to adjust or increase its capacity to meet demand.

Market Acceptance

The degree to which a new product, service, or business model is embraced by potential customers and the market at large.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.

Utilization

The extent to which a resource, such as equipment or labor, is being used effectively to produce goods or services.