Property Taxes Are

question 51

Multiple Choice

Property taxes are

• A) quite flexible, with assessments and rates changing frequently.
• B) generally taxes with rising marginal rates, taxing the wealthy more heavily.
• C) the major source of revenue for the federal government.
• D) frequently calculated on assessed values, which are much lower than actual market values.
• E) levied only on real estate.

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Definitions:

Marginal Productivity Theory

An economic theory suggesting that the addition of a unit of labor or capital within the production process will increase the output by the amount of the marginal product.

MP L

Marginal Product of Labor; the additional output resulting from employing one more unit of labor, holding other inputs constant.

MP C

Marginal Propensity to Consume, which is the fraction of additional income that a household spends on consumption.

Production Costs

Expenses associated with the creation of a product or service, including raw materials, labor, and overhead costs.