Choose the Word or Phrase in [ ] Which Will

question 21

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Credit life insurance is generally considered to be a [good | poor] life insurance buy.

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Definitions:

Pretax Income

The amount of income earned by an individual or corporation before taxes are deducted.

Benefits Principle

A taxation principle that states those who benefit from government services should pay in proportion to the amount they benefit.

Taxation

The system through which governments impose financial charges on citizens or corporates to fund public spending.

Tax Incidence

The study of the effect of a particular tax on the distribution of economic welfare, focusing on who ultimately pays the tax (the burden of the tax).