Provinces Are Restricted to Imposing Direct Taxes Because

question 13

Multiple Choice

Provinces are restricted to imposing direct taxes because

• A)direct taxes always generate more money than indirect taxes.
• B)indirect taxes always generate more money than direct taxes.
• C)practically speaking, there is no way for a province to collect an indirect tax.
• D)the burden of an indirect tax is generally shifted onto other people by the taxpayer, so that there is a real risk that a province's indirect tax will ultimately be paid by someone outside that province.
• E)the federal government is restricted to imposing indirect taxes.

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Definitions:

Demand for Labor

The demand for labor reflects the amount of labor employers are willing to hire at a given wage rate, influenced by economic conditions and productivity.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be effectively excluded from use and where use by one individual does not reduce availability to others.

Marginal Product

The increase in output that is produced by adding one more unit of a particular input while holding all other inputs constant.

Total Output

The complete amount of goods or services produced by an economy, sector, or organization over a certain period.