Which of the Following Is an Advantage of a Value

question 25

Multiple Choice

Which of the following is an advantage of a value added tax (VAT) compared to a final tax on retail sales?

• A) The VAT may lead to higher revenue collected because even if no sales takes place, the government collects tax revenue at earlier stages of production.
• B) The VAT is a more equitable tax system because the tax burden is shared by every participant in the production process and by the final consumer.
• C) The VAT encourages productive behavior because each producer bears a smaller portion of the total tax imposed on a product.
• D) The VAT reduces a nation's trade deficit.

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Definitions:

Throttle Position

Throttle position indicates the angle or level of opening of the throttle in an internal combustion engine, measured by a throttle position sensor to adjust fuel injection.

Converter/Cooler/Lubrication

A system in engines or transmissions that converts power, removes heat, and reduces friction to enhance performance and longevity.

Oil Circuit

A system designed for the circulation of oil to various parts of a machine or engine for lubrication and cooling purposes.

Pressure Regulator Valve

A valve that automatically cuts off the flow of a liquid or gas at a certain pressure to maintain the desired pressure level in a system.