Which of the Following Is a Major Limitation on the Federal

question 41

Multiple Choice

Which of the following is a major limitation on the federal government's power to tax?

• A) Indirect taxes must be apportioned among the states.
• B) All custom duties and excise taxes must be uniform throughout the United States.
• C) Progressive tax rates are prohibited.
• D) All of these.

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Definitions:

Market Failure

A situation in which the market does not allocate resources efficiently, leading to a loss of economic and social welfare.

Unemployment

This indicates the condition of being jobless despite the willingness and capability to work, measured as a percentage of the labor force.

Health Maintenance Organizations

A type of health insurance plan that provides a network of doctors and hospitals for patient care, often with an emphasis on prevention and wellness.

Lower Wages

Reduced compensation for work performed, often relative to previous levels or compared to industry standards.