If Everyone Pays a Fixed Dollar Amount of Tax, Then

question 88

Multiple Choice

If everyone pays a fixed dollar amount of tax, then the tax is a

• A)proportional tax.
• B)regressive tax.
• C)personal tax.
• D)marginal tax.

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Definitions:

Total Variable Costs

The sum of all costs that vary with the level of output or production.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and labor expenses.

Fixed Costs

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

Profit

The difference between total revenue and total cost.