Which Statement About a Value-Added Tax Is TRUE

question 28

Multiple Choice

Which statement about a value-added tax is TRUE?

• A) A value-added tax is a consumption tax.
• B) A value-added tax taxes goods at each stage of production on the total value of the good at that stage in the production process.
• C) Avoiding a value-added tax is a strong incentive for black market activity.
• D) A value-added tax is an income tax.

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Definitions:

Fair Housing Act

A U.S. law that aims to prevent discrimination when renting or selling housing based on race, religion, sex, national origin, disability, or family status.

Negligent

The failure to take reasonable care or measures to prevent harm or damage, leading to liability for any resulting damages.

Waste

Permanent and substantial injury to a landlord's property.

Legal Liability

The responsibility of an individual or entity for actions or omissions that result in harm or loss to another party, subject to legal sanctions.