Recall Application 3, "Is a VAT in Our Future?" to Answer

question 18

Multiple Choice

Recall Application 3, "Is a VAT in our Future?" to answer the following questions.
-According to the application, what is the difference between a VAT and a sales tax?

• A) The sales tax is a consumption tax while the VAT is not.
• B) The VAT is already embedded in the price of the good, while sales taxes are paid upon purchase.
• C) The sales tax is easy to collect while the VAT is not.
• D) The sales tax is regressive while the VAT is not.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, indicating where the middle of the data set lies.

Variability

The degree to which data points in a statistical distribution or dataset differ from each other and from the average.

Standard Deviation

A measure of the dispersion or variation in a set of numbers, indicating how spread out the values are from the mean.

Measure of Central Tendency

A statistical tool used to identify the center of a data set, commonly represented by the mean, median, or mode.