If the Cost Per Unit of Output for a Particular

question 118

Multiple Choice

If the cost per unit of output for a particular product is $50 and the product sells for $55,what is the percentage markup over cost per unit?

• A) 200 percent
• B) 10 percent
• C) 100 percent
• D) 20 percent
• E) 50 percent.

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Definitions:

Benefits Principle

A taxation theory suggesting that people should be taxed based on the benefits they receive from government services.

Progressive Tax

A tax system in which the tax rate increases as the taxable base amount increases, resulting in higher income individuals paying a larger percentage of their income in taxes compared to lower-income individuals.

Vertical Equity

A concept in taxation that argues taxpayers with a greater ability to pay taxes should pay more, compared to those with a lesser ability to pay.

Marginal Tax Rate

The tax rate that applies to the last dollar of the tax base (income or wealth) earned.