Jason works for the state government.The state is concerned because the receipts from sales tax are much lower than the projections,even though the projections of population,salaries,and unemployment have been right on target.Jason does a detailed study and finds that much of the underestimation of sales tax revenue is most likely due to ________.
A) a general decrease in prices
B) increased lateral cycling in an underground economy
C) an increase in freecycling
D) an increase in product quality

Question

Quizplus · Accepted Answer

Increased lateral cycling in an underground economy refers to more transactions occurring outside the official market, which would mean fewer sales being reported and therefore lower sales tax revenue than projected. The other options provided do not necessarily relate to a decrease in sales tax revenue.

Jason Works for the State Government