Which of the Following Is NOT an Important Source of Revenue

question 26

Multiple Choice

Which of the following is NOT an important source of revenue for the federal government?

• A) individual income taxes
• B) property taxes
• C) social insurance taxes and contributions
• D) corporate income taxes

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Definitions:

Income Elasticity

A rephrased definition: The responsiveness of demand for an item to changes in the income of the people demanding the item.

Inferior Good

A good or service whose consumption declines as income rises, prices held constant.

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.

Constant Elasticity

A condition where the elasticity, or responsiveness, of a variable does not change regardless of the level of the variable being examined.