Identify Which of the Following Statements Is False

question 48

Multiple Choice

Identify which of the following statements is false.

• A)Special use valuation is available for farmland to help alleviate liquidity problems.
• B)The transferee is liable for the generation-skipping transfer tax (GSTT)in the case of a direct skip.
• C)The generation-skipping transfer tax (GSTT)is imposed to assure that some form of transfer taxation is imposed once a generation.
• D)A direct skip skips one or more generations.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by one individual without reducing availability to others and without a direct cost.

Free-Rider Problem

A situation where some individuals consume more than their fair share or pay less than their fair share of the cost of a shared resource.

Externalities

Effects of a transaction that affect third parties who did not choose to be involved in the market transaction, which can be either positive or negative.

Nonrivalry

A characteristic of a good where one person's consumption does not diminish the ability of others to consume the same good.