If a Large Percentage of Economic Activity in Developing Countries

question 7

Multiple Choice

If a large percentage of economic activity in developing countries is unrecorded, then the countries are likely to rely on which of the following taxes to provide government revenue?

• A) Sales taxes
• B) Property taxes
• C) Income taxes
• D) Tariffs

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Definitions:

Cost Of Goods Sold

The immediate expenses associated with manufacturing the products a company sells, such as materials and workforce costs.

Inventory

The complete inventory of products and materials that a company keeps for the aim of either selling them or using them in manufacturing.

Tangible Assets

Assets with a physical form such as machinery, buildings, and land that a company owns and uses in its operations.

Long-Term Debt

Refers to loans and financial obligations lasting over one year.