Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true ?

• A) A sales tax on food is a regressive tax.
• B) The largest source of federal government tax revenue is individual income taxes.
• C) The largest source of state and local governments tax revenue is sales and excise taxes.
• D) All of the above are true.
• E) None of the above are true.

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Definitions:

Market Allocations

Agreements between competitors to divide markets among themselves, often considered illegal under antitrust laws.

Sherman Act

The Sherman Act is landmark federal legislation passed in 1890 aimed at promoting fair competition for the benefit of consumers by prohibiting monopolies and restrictive trade practices.

Franchise

A type of license that a party (franchisee) acquires to allow them to have access to a business's (franchisor's) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business's name.

Tying Arrangement

A business practice where the sale of one product is linked to the compulsory purchase of another, often scrutinized under antitrust laws.