Answer the Question on the Basis of the Following Five $\quad$

question 91

Multiple Choice

Answer the question on the basis of the following five schedules,all of which represent income tax schedules for an economy.All figures are in billions of dollars. $\quad$ $\quad$ $\quad$ $\quad$ I $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ II $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ III $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ IV $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ V
$\begin{array}{c}\begin{array}{c}\\\underline{\text { Tax} } \\ \$ 30 \\50 \\60 \\70\end{array}\begin{array}{c}\text { Base } \\\underline{\text { (Income) }}\\\$ 100 \\200 \\300 \\400\end{array}\begin{array}{c}\\\underline{\text { Tax } }\\ \$ 10 \\20 \\30 \\40\end{array}\begin{array}{c}\text { Base } \\\underline{\text { (Income) }}\\\$ 100 \\200 \\300 \\400 \end{array}\begin{array}{c}\\\underline{\text { Tax }} \\ \$ 5 \\15 \\30 \\50\end{array}\begin{array}{c}\text { Base } \\\underline{\text { (Income) }}\\\$ 100 \\200 \\300 \\400 \end{array}\begin{array}{c}\\\underline{\text { Tax }} \\\$ 30 \\60 \\90 \\120\end{array}\begin{array}{c}\text { Base } \\\underline{\text { (Income) }}\\\$ 100 \\200 \\300 \\400 \end{array}\begin{array}{c}\\\underline{\text { Tax} } \\\$ 10 \\30 \\60 \\100 \end{array}\begin{array}{c}\text { Base } \\\underline{\text { (Income) }}\\\$ 100 \\200 \\300 \\400 \end{array}\end{array}$
Which of the schedules represent(s) a regressive tax?

• A) V only.
• B) III and V.
• C) IV only.
• D) I only.

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Definitions:

Total Variable Cost

The cumulative cost that varies in direct proportion to changes in the level of output or activity, such as raw materials and direct labor.

Total Expenses

The aggregate amount of all costs incurred by a business during a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more useful tool for performance evaluation.

Employee Salaries And Wages

Refers to the total payments made to employees for the work they have done, inclusive of overtime, bonuses, and other compensations.