Tax Shifting Refers to the Fact That

question 43

Multiple Choice

Tax shifting refers to the fact that

• A)sellers will try to pass the burden of an excise tax on to the buyers.
• B)high-income groups tend to pay a higher average tax rate than low-income groups.
• C)as one earns a higher income, one shifts to a high tax bracket.
• D)a nation can sometimes shift from a progressive tax structure to one that is regressive.

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Definitions:

WIP Inventories

refers to Work-in-Process Inventories, which consist of materials and products that are partially completed in the production process.

VMI Inventories

Vendor Managed Inventory; a supply chain management practice wherein the supplier of goods manages levels of inventory at the customer's premises.

EOQ

Economic Order Quantity, a formula used to determine the optimum order quantity that minimizes total inventory costs.

Dependent Demand

Refers to the demand for components or raw materials that is driven by, and directly related to, the demand for the finished goods they contribute to.