The Demand for a Good or Service Is Determined by

question 173

Multiple Choice

The demand for a good or service is determined by

• A)those who buy the good or service.
• B)the government.
• C)the producers who create the good or service.
• D)those who supply the raw materials used in the production of the good or service.

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Definitions:

Tax System

The comprehensive set of laws and regulations governing the collection of taxes by the government from individuals and businesses.

Average Tax Rate

Total taxes paid divided by total income

Taxable Income

The amount of income used to determine how much tax an individual or a company owes to the government in a given tax year.

Lump-Sum Taxes

Taxes with a fixed amount, not dependent on the taxpayer's income level or economic activity, making them neither progressive nor regressive.