Which of the Following Statements Concerning Tax Preferences Is False

question 75

Multiple Choice

Which of the following statements concerning tax preferences is false?

• A) Tax preferences increase the complexity of the law.
• B) Tax preferences raise additional revenue for the government.
• C) Tax preferences are government subsidies for targeted taxpayer activities.
• D) Tax preferences do not improve the accurate measurement of the tax base.

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Definitions:

More Elastic

Describes a demand or supply curve that shows a greater sensitivity to changes in price; a small change in price results in a larger change in quantity demanded or supplied.

Consumer Price

The price that end-users or consumers pay for goods or services, including taxes and distribution expenses.

More Elastic

Refers to a situation where the quantity demanded or supplied of a good or service is more sensitive to changes in price.

Municipal Swimming Pool

A public swimming facility maintained by a local government for the use of its residents.