How Do Taxation and User Charges Compare as Government Revenue

question 93

Multiple Choice

How do taxation and user charges compare as government revenue sources?

• A) Each generates about the same amount of government revenue.
• B) Revenues from taxation are much greater than revenues from user charges.
• C) User charges generate much more revenue than do taxes.
• D) We don't know because the government does not publish revenue figures broken down.

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Definitions:

APR

The Annual Percentage Rate, a measure used to calculate the cost of borrowing, including interest and other fees, shown as a yearly rate.

Payday Loan

A type of short-term borrowing where a lender provides high-interest credit based on a borrower's income and credit profile, typically to be repaid by the next payday.

Average Daily Balance

The average amount owed per day during a billing cycle.

Finance Charges

The cost of borrowing money on credit, including interest and other fees.