Author Question: One advantage of ad valorem taxes over unit taxes is that _____. a. the tax is more difficult to ... (Read 64 times)

ss2343 · **on:** Jul 1, 2018

One advantage of ad valorem taxes over unit taxes is that _____.

a. the tax is more difficult to evade
b. the tax is easier to collect
c. the tax increases with inflation
d. the tax automatically adjusts for inflation

Question 2

The most important difference between unit excise taxes and ad valorem excise taxes is _____.

a. the unit tax will change in response to a change in the price of the taxed good, while the ad valorem tax will not
b. the unit tax will not change in response to a change in the price of the taxed good, while the ad valorem tax will
c. the unit tax increases in response to a change in the price of the taxed good, while the ad valorem tax will decline
d. the unit tax declines in response to a change in the price of the taxed good, while the ad valorem tax will increase