Which Type of Tax Was the Biggest Source of Local

question 21

Multiple Choice

Which type of tax was the biggest source of local revenues before voters passed Proposition 13 in 1978?

• A)sales tax
• B).income tax
• C)property tax
• D)sin taxes

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Definitions:

Purely Competitive

An idealized market structure in which there are many buyers and sellers, no barriers to entry or exit, and perfect information, leading to prices being determined by supply and demand.

Market Supply Curve

A graphical representation showing the total quantity of a good that sellers are willing and able to sell at various prices, holding all else constant.

Purely Competitive

A market structure characterized by a large number of small firms producing similar products, with easy entry and exit from the market, leading to price-taking behavior.

New Firms

New firms refer to businesses that have been recently established and are in the early stages of their operational life.