Which of the Following Is the Largest Source of Tax

question 21

Multiple Choice

Which of the following is the largest source of tax revenue for the U.S.federal government?

• A) individual income tax
• B) corporate income tax
• C) Social Security and Medicare taxes
• D) estate taxes

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Definitions:

Total Profit

The overall financial gain made in a business transaction or operation, calculated as the revenue minus the costs of achieving that revenue.

Total Loss

A situation in insurance or business where the cost of repair or recovery exceeds the value of the asset or investment.

Long Run

A period in economics during which all factors of production and costs are variable, and firms can adjust all inputs.

Efficient Output

The level of production that maximizes a firm's profits while minimizing its costs, often associated with where marginal cost equals marginal revenue.