Low Consumer Spending and a Lack of Adequate Financing Are

question 276

Multiple Choice

Low consumer spending and a lack of adequate financing are conditions that arise mostly due to factors in:

• A) the competitive environment.
• B) the cultural and social environment.
• C) the technological environment.
• D) the political environment.
• E) the economic environment.

---

Definitions:

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.

Average Tax Rate

The ratio of total taxes paid to total income, representing the percentage of income that goes to taxes.

Income

The money received by a person or household from various sources like work, investments, or benefits, typically used for consumption, savings, and investing.