(Last Word) Which of the Following Statements About Taxes and Government

question 31

Multiple Choice

(Last Word) Which of the following statements about taxes and government spending is correct?

• A)Despite the overall progressive tax system, government expenditures disproportionately favor the rich and result in a system that is slightly regressive.
• B)The progressive tax system is almost perfectly offset by regressive expenditures, making the overall system proportional.
• C)The regressive tax system is offset by expenditures directed toward lower-income households, making the overall system proportional.
• D)The overall system of taxes and spending is progressive, as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.

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Definitions:

Inventory

The goods and materials held by a company for the purpose of resale or production.

Sales

The total amount of revenue generated from selling goods or services over a specific period.

February

This month falls second in the Gregorian calendar lineup, featuring 28 days in typical years and 29 in those considered leap years.

Administrative Expense

Costs related to the general operation of a company, such as salaries of executive officers and costs associated with the corporate office.