If the Government Imposed a R10 000 Tax on Every

question 16

Multiple Choice

If the government imposed a R10 000 tax on every individual,

• A) this would be an equitable tax.
• B) allocative efficiency would have to be sacrificed.
• C) this would be an efficient tax.
• D) this would be an income tax.

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Definitions:

Capacity

In finance, the ability of an individual or organization to repay a loan or meet financial obligations.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Selling Price

The fixed or negotiated amount at which a product or service is sold to customers.

Fixed Costs

Business costs that do not vary with the amount of goods produced or the volume of sales.