Refer to the Above Diagram Wherein T Is Tax Revenues

question 132

Multiple Choice

Refer to the above diagram wherein T is tax revenues and G is government expenditures.All figures are in billions.The tax system of this economy is such that:

• A)it is regressive.
• B)it is progressive.
• C)tax revenues equal 50 percent of GDP.
• D)it tends to destabilize the economy.

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Definitions:

Privity of Contract

The principle that a contract confers rights and imposes liabilities only on its parties; no outsider can gain rights or be liable under it.

Novation

The process of replacing an existing obligation with a new one, substituting a party or terms in a contract with the consent of all parties involved.

Rules of Interpretation

Guidelines and principles used to determine the meaning and intention of legal texts and statutory provisions.

Doctrine of Privity

A principle in contract law stating that contracts are binding only upon the parties signing the contract and no third party can enforce or be bound by the contract.