Th4.5: ^^ Level of Taxation

Question 1

In most cases, where government spending is high…

Answer 1

levels of tax must be high in order for spending to be sustainable

Question 2

What kind of effect may high levels of tax have?

Answer 2

disincentive effect

Question 3

What tends to be an exception and why?

Answer 3

oil-rich countries, where revenue from oil can pay for most of government spending