QUESTION 42 A consumption tax is likely to increase savings as long as individuals: choose to consume more, even though the lower tax on savings makes them less wealthy. choose to retire later, so that their pension funds are taxed less severely. choose to consume less, even though the lower tax on savings makes them wealthier. choose to transfer balances from saving accounts with no tax advantages into tax-favored investments. QUESTION 43 If what a government spends exceeds what it collects in taxes in a year, then the government is experiencing a: government net revenue. government net expenditure. government budget deficit. government budget surplus. QUESTION 44 A key feature of consumption taxation is that you should: not pay more taxes if you choose to save more of your income. pay more taxes if you choose to save more of your income. pay more taxes if you are richer. pay more taxes if you are poorer.
QUESTION 42 A consumption tax is likely to increase savings as long as individuals: choose to consume more, even though the lower tax on savings makes them less wealthy. choose to retire later, so that their pension funds are taxed less severely. choose to consume less, even though the lower tax on savings makes them wealthier. choose to transfer balances from saving accounts with no tax advantages into tax-favored investments. QUESTION 43 If what a government spends exceeds what it collects in taxes in a year, then the government is experiencing a: government net revenue. government net expenditure. government budget deficit. government budget surplus. QUESTION 44 A key feature of consumption taxation is that you should: not pay more taxes if you choose to save more of your income. pay more taxes if you choose to save more of your income. pay more taxes if you are richer. pay more taxes if you are poorer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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