The Primary Reason for Arguing That the Sales Tax Imposes

question 47

Multiple Choice

The primary reason for arguing that the sales tax imposes a greater relative burden on the poor is that

• A) the incidence of the sales tax falls entirely on the consumer.
• B) sales taxes lower the final prices of the goods taxed.
• C) the poor spend a greater percentage of their incomes than do the rich.
• D) poor people have more trouble evading sales taxes than the rich.
• E) poor people live primarily in rental dwellings, whereas rich people own their own houses.

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Definitions:

Working Memory

A cognitive system responsible for temporarily holding information available for processing, important for reasoning and the guidance of decision-making and behavior.

Semantic Memory

A type of long-term memory involving the ability to remember facts and general knowledge about the world.

Hippocampus

A major component of the brain involved in memory formation and spatial navigation.

Retrieval Cues

Stimuli or signals that can trigger the memory recall of previously learned information.