The Differential Incidence of Substituting a Tax on Comprehensive Consumption

question 39

Multiple Choice

The differential incidence of substituting a tax on comprehensive consumption for a tax on comprehensive income is likely to be:

• A)regressive.
• B)progressive.
• C)proportional.
• D)uncertain.

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Definitions:

Emergency

A sudden, unexpected situation requiring immediate action to prevent or mitigate a dangerous or harmful outcome.

Autonomic Nervous System

Part of the peripheral nervous system that controls involuntary bodily functions like heartbeat, digestion, and breathing.

Physiological Arousal

The bodily responses to stimuli, such as increased heart rate or adrenaline release, indicating excitement or stress.

Emotional Arousal

Refers to the physiological and psychological state of being awoken or stimulated to have intense emotions or feelings.