A Consumption Tax Would

question 42

Multiple Choice

A consumption tax would

• A)encourage saving because individuals would only pay taxes on income they spend.
• B)be progressive because everyone would be subject to the same tax system.
• C)be progressive because higher income people spend more than lower income people.
• D)be proportional because everyone would be subject to the same tax system.

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Definitions:

Group Polarization

The tendency for a group's prevailing attitudes or beliefs to become more extreme after discussing them as a group.

Social Facilitation

Improvement in an individual’s performance because of the presence of others.

Solomon Asch

A psychologist best known for his research on group conformity and social pressure influencing individuals' judgments and perceptions.

Conformity

A change in a person’s behavior to coincide more closely with a group standard.