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:

Adverse Effects

Unintended, harmful outcomes or reactions caused by a medication, treatment, or intervention.

Real World

Refers to the actual conditions and complexities of life outside of controlled or artificial environments, emphasizing practicality and real-life experiences.

Pigeons

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Rats

Often used in psychology experiments as subjects for studying behavior, learning, and neurological processes.