Which Statement About a Value-Added Tax Is TRUE

Which statement about a value-added tax is TRUE?

A) A value-added tax is a consumption tax.
B) A value-added tax taxes goods at each stage of production on the total value of the good at that stage in the production process.
C) Avoiding a value-added tax is a strong incentive for black market activity.
D) A value-added tax is an income tax.

Correct Answer:

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