Would You Expect the Following to Be High or Low

question 106

Multiple Choice

Would you expect the following to be high or low in a labour-intensive industry: (1) operating leverage, (2) break-even point and (3) safety margin?

• A) High, high, low
• B) Low, low, high
• C) Low, low, low
• D) High, high, high

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Definitions:

Tax Burden

The measure of the financial charge or impact of taxes on an individual or a corporation.

Excise Tax

A tax on specific goods or services, such as tobacco, alcohol, and gasoline, designed to raise revenue and/or discourage consumption of certain products.

Equilibrium

A state in which the conflicting forces of demand and supply are in balance. When a market is in equilibrium, the decisions of consumers and producers are brought into harmony with one another, and the quantity demanded will equal the quantity supplied.

Revenue

Aggregate income a company secures from its sales of products or rendering of services in a given period.