Which of the Following Is Not Part of the Cost

question 33

Multiple Choice

Which of the following is not part of the cost of inflation?

• A)shoeleather costs
• B)menu costs
• C)distortions of the tax system
• D)stronger domestic currency

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Definitions:

Corporate Tax Rate

The rate at which businesses are taxed on their profits by the government.

Corporate Tax Rate

The percentage of corporate profits that companies are required to pay to the government as tax.

Fixed Costs

These are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Economy Strong

A state wherein an economy is experiencing robust growth, low unemployment, and increasing levels of consumer spending and business investment.