Which of the Following Is True Regarding Use Taxes

question 102

Multiple Choice

Which of the following is true regarding use taxes?

• A) A use tax is relatively easy to enforce compared to a sales tax.
• B) Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.
• C) Use taxes encourage taxpayers to buy goods out of state to avoid paying sales tax in their home state.
• D) A use tax is generally a progressive tax.
• E) None of these is true.

Analyze the effect of income changes on consumer choices and budget constraints.

Understand the relationship between the slope of the budget line and the prices of goods.

Evaluate how government policies like subsidies and taxes affect consumer budget and choices.

Identify factors that influence a consumer's budget line and consumption choices, excluding preferences.

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Definitions:

Sciatic

Pertaining to the sciatic nerve, which is the longest nerve in the human body, running from the lower back down through the leg.

Femoral

Pertaining to the femur or the thigh region.

Pudendal

Related to the pudendal nerve, which supplies areas such as the external genitalia and the skin around the anus and perineum.

Musculocutaneous

Relating to both muscles and the skin, or a nerve in the arm that innervates the front muscles of the upper arm and the skin of the forearm.