Which of the Following Is True Regarding State and Local

question 39

Multiple Choice

Which of the following is true regarding state and local taxes?

• A) All states impose a state income tax.
• B) Every jurisdiction imposes a sales or use tax.
• C) The primary purpose of state and local taxes is to raise revenue.
• D) Property taxes are primarily used to finance a state's general revenue fund.

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Definitions:

Structural Unemployment

A type of unemployment resulting from a discrepancy between the skills available in the workforce and those required by employers.

Skills

The abilities and expertise acquired through training or experience that enable an individual to perform tasks effectively.

Natural Rate

The level of unemployment or interest that exists when an economy is balanced, not affected by short-term fluctuations or cyclical, structural factors.

Price Level

The combined average cost of all goods and services manufactured within the economy.