Does a state sales tax function as a progressive, regressive, or proportional source of revenue, and why?
What will be an ideal response?
A regressive tax system is one in which tax rates fall as incomes rise. A state sales tax is typically a fixed percentage of certain purchases, but individuals with lower incomes spend a larger portion of their income on items that are sales taxed. As incomes rise, a smaller portion of income is spent on these items, and therefore a lower percentage is allocated to sales tax. As a result, a state sales tax functions as a regressive tax.
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"Price discriminators lose money by being nice to their customers." Is the previous statement correct or incorrect?
What will be an ideal response?
To compete in the automobile market, Tesla must make many strategic decisions such as whether to introduce a new car model, how to sell and service its cars, and where to advertise
At Tesla's Fremont, California plant, managers must decide on the monthly production quantities of their S and X models. In making this decision, the managers A) will choose to only produce the quantity of S and X models where marginal cost equals zero. B) will always decide on production quantities in which revenues are maximized. C) face no trade-off because the Fremont plant only produces these two models of the many Tesla models produced worldwide. D) face a trade-off, because producing more of one model means producing less of the other.
An increase in the education level inside a nation would cause the:
A. long-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. short-run aggregate supply curve to shift to the left. D. aggregate demand curve to shift to the right.
Sole Proprietorships use __________ as its Federal Tax ID number.
a. the owner's social security number b. an EIN number c. business operating license number d. none of these