A Tax Is Regressive If It Takes a

question 5

Multiple Choice

A tax is regressive if it takes a

• A)Larger number of dollars as income falls.
• B)Smaller fraction of dollars as income falls.
• C)Larger number of dollars as income rises.
• D)Smaller fraction of dollars as income rises.

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Definitions:

Owner's Capital

The amount of money and other assets owned by a business's owner after all liabilities have been deducted; also known as owner's equity.

Accounts Receivable

Amounts due from clients to a business for goods or services that have been supplied or rendered but haven't been settled.

Accounts Payable

Amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Supplies

Materials and items consumed or used in the day-to-day operations of a business but not directly tied to the products manufactured.