Which of the Following Statements About Taxes on Consumption Are

question 31

Multiple Choice

Which of the following statements about taxes on consumption are true?

• A)Taxes on consumption do not distort choices between current and future consumption in ways that impair efficiency.
• B)Taxes on consumption have the same economic effects as taxes on income.
• C)Taxes on consumption are likely to reduce saving.
• D)Taxes on consumption have no effect on real wages.

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Definitions:

Insanity Defense

A legal defense strategy in which the defendant claims that they were unable to understand the nature of their actions or distinguish right from wrong due to a psychiatric disorder at the time of the crime.

Biological Perspective

An approach in psychology that examines behavioral and mental processes through the lens of biological processes and structures.

Behavioral

Relating to actions or activities of individuals or groups and the study of these actions in psychology, especially concerning the effects on the environment on behavior.

Social

Pertaining to the relations between individuals or groups of people, including interactions and organizational patterns within society.