c. a flat-rate tax will be used. d. the tax system will not result in losses in efficiency in markets. 3. The tax base of a payroll tax is: a. consumer expenditures. b. interest income. c. labor income. d. both( b) and( c)
4. A 5-percent retail sales tax on all consumer purchases in a state is imposed. The sales tax is:
a. a flat-rate tax. b. a tax with a regressive rate structure. c. levied on an income base. d. all of the above 5. A tax on the value of real estate holdings is a: a. selective tax on wealth. b. general tax on wealth. c. general tax on income. d. selective tax on income. 6. An excise tax is a: a. general consumption tax. b. selective consumption tax. c. general wealth tax. d. selective tax on wealth.