A Flat-Tax on All Personal Income Would Be an Example

question 83

Multiple Choice

A flat-tax on all personal income would be an example of

• A)a regressive tax.
• B)a progressive tax.
• C)a value added tax.
• D)a proportional tax.

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Definitions:

Carrying Cost

The total expense of holding a particular asset over time, including storage, insurance, and taxes, but excluding buying cost.

Order Cost

Expenses incurred in placing and receiving orders from suppliers, including costs related to processing, shipping, and handling.

Economic Order Quantity

The ideal order size to minimize total inventory costs including ordering, carrying, and stockout costs.

Variable Cost

A cost that varies with the level of output or production activity, increasing as production increases and decreasing as production decreases.