The Federal Goods and Services Tax

question 36

Multiple Choice

The federal goods and services tax

• A)is consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income people.
• B)is not consistent with the ability-to-pay principle because low-income individuals tend to spend a larger fraction of their income than do high-income individuals.
• C)is not consistent with the ability-to-pay principle because low-income individuals tend to purchase a smaller bundle of goods and services compared to high-income individuals.
• D)is not consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income individuals, yet pay the same sales tax rate.

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Definitions:

Threatening Messages

Communications intended to induce fear, anxiety, or a sense of danger in the recipient, often used to manipulate or control behavior.

Avoidant Jealousy

A defensive form of jealousy where individuals avoid dealing with feelings of jealousy or situations that could lead to jealousy.

Intrapsychic Phase

First phase in relationship termination, when an individual engages in an internal evaluation of the partner.

Dyadic Phase

A phase in relationship termination, during which the individual discusses termination with the partner.