The sales tax A) is not consistent with the benefits-received ...

[Haya94]

The sales tax
 
  A) is not consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income individuals, yet pay the same sales tax rate.
  B) is consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income people.
  C) is not consistent with the ability-to-pay principle because low-income individuals tend to spend a larger fraction of their income than do high-income individuals.
  D) is not consistent with the ability-to-pay principle because low-income individuals tend to purchase a smaller bundle of goods and services compared to high-income individuals.

Question 2

Which of the following is not one of the four main categories of spending identified by John Maynard Keynes?
 
  A) government purchases B) transfer payments
  C) planned investment D) consumption

[af]

Answer to Question 1

C

Answer to Question 2

B

[Haya94]

Thanks for the timely response, appreciate it

[amcvicar]

Excellent