High-Tax Capacity Is Associated with

question 48

Multiple Choice

High-tax capacity is associated with

• A)the degree of centralization or decentralization of state activities.
• B)the tax-collecting vigor of the state.
• C)high levels of urbanization, per capita income, economic development, and natural resources.
• D)the political culture, historic factors, and other state-specific variables.

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Definitions:

Average Variable Cost

The cost of production that varies with the output level, calculated by dividing the total variable costs by the number of units produced.

Average Product

is the output per unit of input, such as the quantity of goods produced per labor hour, and is used to measure productivity.

Marginal Cost

The expenditure resulting from the creation of an additional unit of a product or service.

Short-run Total Cost

The total of all costs, both fixed and variable, that a firm incurs in producing goods or services in the short run.