What Is a Value-Added Tax (VAT)

question 92

Multiple Choice

What is a value-added tax (VAT) ?

• A) It is essentially a tax on profits earned by firms from the sale of goods and services.
• B) It is a tax placed on a product whenever value is added at a stage of production and at final sale.
• C) It is a tax imposed on those who supply factors of production, such as the payroll tax.
• D) It is a tax imposed on luxury goods to generate additional revenue for the government.

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Definitions:

Learning Orientation

An inclination towards valuing and pursuing new knowledge and skills as a way to improve oneself and one's performance.

Performance Avoidance Orientation

A mindset aimed at avoiding failure and negative judgments rather than achieving success, which can impact motivation and performance.

Team Norms

are the shared expectations and rules that guide the behavior of team members within a group.

Expected Behavior

The behavior that individuals or groups are anticipated to exhibit based on societal norms, rules, or standards.