Which of the Following Statements About Implicit and Explicit Taxes

question 60

Multiple Choice

Which of the following statements about implicit and explicit taxes is false?

• A) The taxpayer pays an explicit tax to the taxing jurisdiction.
• B) An investment yielding ordinary income taxed at the regular tax rates should not have an implicit tax.
• C) Any implicit tax on investment income is always more than the explicit tax on the income.
• D) An implicit tax reduces the before-tax yield on an investment.

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Definitions:

Social Dominance Orientation

A personality trait that predicts social and political attitudes, characterized by a preference for hierarchy within groups and dominance over lower status groups.

Self-objectification

The tendency to see oneself primarily as an object to be looked at and evaluated on the basis of appearance.

Salient Categorization

The process of identifying and grouping entities based on prominent features that stand out to an individual.

Decategorization

The process of viewing individuals as unique rather than as representatives of social groups or categories.