Which of the Following Is NOT an Example of an Automatic

question 109

Multiple Choice

Which of the following is NOT an example of an automatic stabilizer?

• A)Social Security payments
• B)Unemployment compensation
• C)Tax hikes that enable a balanced budget
• D)Progressive personal income tax rates
• E)Unemployment benefits

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Definitions:

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects cash from credit customers.

Sales Returns

Goods returned by customers to the seller after the sale has occurred, typically due to defects or dissatisfaction.