Identify Which of the Following Statements Is False

question 29

Multiple Choice

Identify which of the following statements is false.

• A)The U.S. Tax Court must follow the previous decisions of the U.S. District Court for the district in which the taxpayer lives.
• B)The U.S. Tax Court follows the previous decisions of the U.S. Court of Appeals to which the tax matter is appealable.
• C)The opportunity for "forum shopping" occurs when different precedents on the same point exist.
• D)The U.S. Tax Court may intentionally issue conflicting decisions.

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Definitions:

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Deadweight Loss

A decrease in economic efficiency due to the failure to achieve or the impossibility of achieving equilibrium for a good or service.

Price-Elastic

Describes a good's demand sensitivity to changes in price; high elasticity indicates demand is highly responsive to price changes.

Excise Tax

A tax paid on specific goods and services, such as tobacco and gasoline, usually levied at the point of manufacture or sale.