Which of the Following Is Likely to Increase the Total

question 41

Multiple Choice

Which of the following is likely to increase the total efficiency units of labor in an economy?

• A) An increase in the inflation rate in the economy
• B) An increase in the amount of capital available to each worker in the economy
• C) An increase in the level of education attained by each worker in the economy
• D) An increase in the unemployment rate in the economy

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Definitions:

Tax Base

The Tax Base is the total amount of assets, income, or other taxable items upon which a government levies taxes.

Tax Liability

The total amount of tax owed by an individual or a corporate entity to tax authorities.

Tax Rate Structure

The way tax rates progress from low to high based on income brackets, affecting how much tax individuals or entities owe.

Progressive

Referring to a tax system in which the tax rate increases as the taxable amount increases.