Suppose You Are Charged a $10 Per Month Base Charge

question 54

Multiple Choice

Suppose you are charged a $10 per month base charge for your electrical service.You are also charged an additional $0.08 for every kwh of electricity you use.The cost is an example of a

• A)Variable cost.
• B)Fixed cost.
• C)Mixed cost.
• D)Step cost.

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Definitions:

Benefits-Received Principle

A theory in taxation where taxes are apportioned according to the level of government services used by the taxpayer.

Excise Taxes

Taxes levied on specific goods, such as tobacco or alcohol, often to discourage their use or to raise revenue.

Taxation

The practice by which governments impose charges on citizens and corporate entities to fund public spending and services, playing a key role in economic policy and regulation.

Local Government

The administration of a particular town, city, county, or district with responsibility for providing services and enforcing regulations at a local level.