Which of the Following Is Not a General Rule for Calculating

question 19

Multiple Choice

Which of the following is not a general rule for calculating the sales factor?

• A) Tangible personal property sales are sourced to the destination state.
• B) If the business does not have nexus in the destination state, the sales are thrown back to the state where the goods were shipped from.
• C) Services are sourced to the destination state.
• D) Government sales are sourced to the state where they were shipped from.

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Definitions:

Downward-sloping Demand

A market phenomenon where demand for a product decreases as the price increases, indicating consumers buy less of the product at higher prices.

Competitive Price-searcher

A firm operating in a market where it must search for the optimal price that balances its desire for profits with the need to remain competitive.

Long-run Equilibrium

A state in which all firms in a market are making zero economic profit, leading to an optimal allocation of resources.