Asked by DIVYNE PERRIN on May 06, 2024
Verified
A consumption tax is a tax on
A) goods but not on services.
B) the amount of income that people spend.
C) the amount of income that people earn.
D) the amount of income that people save.
Consumption Tax
A tax on the spending on goods and services purchased by consumers.
Income
Regular revenue generated through employment or by making investments.
Goods and Services
Refers to the physical products and intangible benefits that fulfill the needs or wants of consumers.
- Evaluate the effects of taxation on saving and spending behaviors.
Verified Answer
KB
karina bravoMay 09, 2024
Final Answer :
B
Explanation :
A consumption tax is levied on the amount of income that individuals spend, not on the income they earn or save. It applies to the purchase of goods and services, making it distinct from taxes that target earnings or savings directly.
Learning Objectives
- Evaluate the effects of taxation on saving and spending behaviors.