The Best Technical Description of a Progressive Tax Is A

question 49

Multiple Choice

The best technical description of a progressive tax is a:

• A)tax which takes more money from the rich than from the poor.
• B)tax likely to discourage incentive.
• C)more equitable tax than a regressive one.
• D)tax which takes a higher proportion of extra dollars received as income rises.
• E)tax which falls directly on those in the high income brackets.

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Definitions:

Standard Markup Pricing

Adding a fixed percentage to the cost of all items in a specific product class.

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.

Profit-Oriented

Focused on achieving financial gain or maximizing profits as the primary goal of business operations.

Cost-Plus-Fixed-Fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee to the cost of the product or service, covering both the cost and a guaranteed profit margin.