Which of the Following Is a Final Good

question 366

Multiple Choice

Which of the following is a final good?

• A) Seed used for corn
• B) Wheat used for bread
• C) Electricity used for producing automobiles
• D) A lawn mower purchased by a household

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Definitions:

Proportional

A tax structure where the rate remains constant regardless of income level.

Progressive Tax Structure

A tax system where the tax rate increases as the taxable amount increases, leading to higher earners paying a larger percentage of their income in taxes.

Marginal Rates

These are the tax rates that apply to each additional dollar of income, used in a progressive tax system where tax rates increase as income rises.

Average Rates

The mean amount of a rate, such as interest or tax rate, calculated by totaling several rates and dividing by the number of rates.