Which of the following statements about taxes on consumption are true?
A) Taxes on consumption do not distort choices between current and future consumption in ways that impair efficiency.
B) Taxes on consumption have the same economic effects as taxes on income.
C) Taxes on consumption are likely to reduce saving.
D) Taxes on consumption have no effect on real wages.
Correct Answer:
Verified
Q28: A tax on comprehensive consumption:
A)will not influence
Q29: Consumption-in-kind:
A)is exemplified by services provided and consumed
Q30: Substitution of an equal-yield general consumption tax
Q31: Suppose two individuals earn the same salary
Q32: Proponents of a consumption tax have argued
Q34: As administered in most states in the
Q35: An adult's life cycle is considered to
Q36: Suppose a consumption-type, value-added tax is introduced
Q37: Comprehensive consumption is:
A)equal to comprehensive income.
B)comprehensive income
Q38: Which of the following is taxable under
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