129 (Last Word) Which of the Following Statements About Taxes

question 100

Multiple Choice

129. (Last Word) Which of the following statements about taxes and government spending is correct?

• A) Despite the overall progressive tax system, government expenditures disproportionately favor the rich and result in a system that is slightly regressive.
• B) The progressive tax system is almost perfectly offset by regressive expenditures, making the overall system proportional.
• C) The regressive tax system is offset by expenditures directed toward lower-income households, making the overall system proportional.
• D) The overall system of taxes and spending is progressive, as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.

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Definitions:

Aggregate Plan

A plan that translates annual business and marketing plans into a production plan to ensure inventory and resources are available to meet customer demand.

Inputs

Resources such as raw materials, labor, and capital that are used in the production process to create outputs.

Enterprise

A business or company, especially when considered in terms of its size, complexity, or organizational structure.

Downstream Partners

Companies or entities that perform activities in the later stages of the supply chain, closer to the end consumers, such as distributors and retailers.