Which of the Following Statements About Implicit and Explicit Taxes

question 60

Multiple Choice

Which of the following statements about implicit and explicit taxes is false?

• A) The taxpayer pays an explicit tax to the taxing jurisdiction.
• B) An investment yielding ordinary income taxed at the regular tax rates should not have an implicit tax.
• C) Any implicit tax on investment income is always more than the explicit tax on the income.
• D) An implicit tax reduces the before-tax yield on an investment.

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Definitions:

American Identity

The sense of a collective character, traditions, and beliefs shared by citizens of the United States.

Local Loyalties

Local loyalties refer to the allegiance or strong attachment people have towards their local community, town, or region, often taking precedence over national loyalties.

Urban Population

The segment of the total population that resides within cities and towns as opposed to rural areas.

Literacy Rates

The percentage of a population that is able to read and write at a specified age, often used as an indicator of educational achievement and social development.