State and Local Governments Receive the Largest Amount of Revenue

question 17

Multiple Choice

State and local governments receive the largest amount of revenue from

• A) personal income taxes.
• B) property taxes.
• C) sales taxes.
• D) payroll taxes.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a responsive market.

Inelastic

Describing a situation where a change in the price of a good or service has a relatively small effect on the quantity demanded or supplied.

Price Elasticity

The responsiveness of the quantity demanded or supplied of a good to a change in its price, commonly referred to in economics as price elasticity of demand or supply.

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price over a specified period.