Which of The Following Statements About Taxes Is True?
a. Taxes are the difference between disposable income and household savings,
b. Taxes are the difference between exports and imports,
c. Taxes are the difference between GDP and disposable income,
d. Taxes are the difference between consumption expenditure and savings.
The correct answer is a. Taxes are the difference between disposable income and household savings.
Taxes:
Taxes are involuntary payments imposed to provide funds for the government. They are used for spending on public welfare. Also, taxes are based on specific items such as income and business transactions.