The Sales Tax

question 63

Multiple Choice

The sales tax

• A)is consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income people.
• B)is not consistent with the ability-to-pay principle because low-income individuals tend to spend a larger fraction of their income than do high-income individuals.
• C)is not consistent with the ability-to-pay principle because low-income individuals tend to purchase a smaller bundle of goods and services compared to high-income individuals.
• D)is not consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income individuals, yet pay the same sales tax rate.

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Definitions:

Pluralism

A theory or system that recognizes the existence of diverse and independent social groups within a society, advocating for their right to coexist and influence public policy.

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A theory suggesting that society is divided between a small ruling elite and the masses, with the elite holding the power and influencing major decisions.

Latino/Hispanic Population

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A conflict between the United States and Mexico from 1846 to 1848, resulting in the U.S. acquisition of territories in the southwest.