What Is a Primary Difference Between the OECD and UN

question 43

Multiple Choice

What is a primary difference between the OECD and UN model tax treaties?

• A)The model espoused by the UN assumes all countries are equals,whereas the OECD model does not.
• B)The model treaty advocated by the UN grants more taxing rights to the host country than does the OECD model when income repatriation is out of developing countries.
• C)The model treaty of the UN gives more taxing rights to well-developed countries than developing countries.
• D)All of the above are differences between the OECD and UN models.

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Definitions:

Diminishing Returns

A rule indicating that after reaching a specific threshold, further investments in a given sector will not yield higher profits at the same rate if all other factors stay unchanged.

Marginal Cost

The heightened expense incurred by fabricating an extra unit of a product or service.

Average Total Cost

The overall expense of manufacturing, including both fixed and variable costs, divided by the amount of product made.

Extra Unit

Refers to an additional quantity of a good or service, often used in the context of calculating marginal costs or benefits.