If Congress Imposes a Regulation on Business That Is Constitutional

question 59

Multiple Choice

If Congress imposes a regulation on business that is constitutional:

• A) "local" businesses will be exempt
• B) the part of the business in intrastate commerce is exempt
• C) states may not enact similar laws that burden interstate commerce
• D) states may enact similar laws even if they burden interstate commerce
• E) none of the other choices are correct

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Definitions:

Incremental Sales

Additional sales generated by a specific business activity or decision, beyond what would have occurred normally.

Operating Expenses

Expenses incurred from the normal operations of a business, excluding the cost of goods sold.

After-Tax Discount Rate

The interest rate used in discounted cash flow analysis that accounts for the impact of taxes on the rate of return.

Income Tax Rate

The share of an individual's earnings that is paid to the government as a tax.