Ethical Considerations Mean That There Is a Support for a Policy

question 96

Multiple Choice

Ethical considerations mean that there is a support for a policy of:

• A) increasing taxes to lower income earners.
• B) reducing taxes to higher income earners.
• C) reducing income inequality below the equilibrium level.
• D) reducing income inequality above the equilibrium level.

---

Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.

Variable Costing

An accounting method that considers only variable costs in calculating the cost of goods sold and determines contribution margin.

Fixed Overhead

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

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues from non-operational activities like investment income.