Which of the Following Statements Is NOT True Regarding the Empirical

question 16

Multiple Choice

Which of the following statements is NOT true regarding the empirical evidence on tax evasion?

• A) In the United States,the tax gap (the difference between the tax owed and taxes paid)is fairly low,similar to other developed countries.
• B) The tax evasion rate is generally positively correlated with the level of economic development.
• C) The appeals to conscience had no effect on the compliance rate in the United States.
• D) Audit threats increased reported income for lower- and middle-class families in the United States.

---

Definitions:

Labor Standards

The established amount of time required to perform a specific task or job, used in planning and evaluating labor efficiency.

Particular Product

A specific item or type of product that is distinct or unique in some way from other products.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected (or standard) wage.

Direct Labor Standard

A benchmark for the amount of labor time that should be consumed in the production of a good or service, used for costing and efficiency analysis.