Given the American Economy's Basic Objective of Meeting Consumers' Needs

question 106

Multiple Choice

Given the American economy's basic objective of meeting consumers' needs as THEY-the consumers-see them, it is sensible to evaluate our MACRO-marketing system in terms of:

• A) the level of consumer satisfaction.
• B) how efficiently our resources are used.
• C) the value of the inputs to the system.
• D) our standard of living-as measured by GNI.
• E) total business profits.

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Definitions:

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act that fund Social Security and Medicare programs.

Regressive

Pertaining to a tax system in which the tax rate decreases as the taxable amount increases, commonly considered less fair because it imposes a heavier burden relative to income on those with less.

Progressive

Pertaining to a taxation system in which the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy to ensure equity.

Consumption Tax

A tax on the purchase of goods or services, levied at the point of sale, designed to tax spending rather than income or savings.