State and Local Governments Generate Most of Their Revenues Through

question 7

Multiple Choice

State and local governments generate most of their revenues through

• A)Income taxes.
• B)Sales and property taxes.
• C)Corporate profit taxes.
• D)Inventory and excise taxes.

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Definitions:

Consumer Surplus

The discrepancy between the sum consumers are ready and capable of paying for a service or product and the sum they actually spend.

Producer Surplus

The discrepancy between what producers anticipate accepting for a good or service and what they end up being paid.

Imported Units

Refer to products or goods brought into a country from another for sale or use.

Total Surplus

The combined total of consumer and producer surplus, signifying the overall net advantage to society derived from a market transaction.