Mbombo, also known as Bumba or Mbongo, is the god of creation in the religion and mythology of...
2016-07-10T02:34:35-04:00. The answer to the question above is letter C. The income that is not used for consumption is called a SAVINGS. Saving consist of the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposable income he or she earns. This question is archived.
A well designed consumption tax is more neutral and does not affect the allocation of resources as dramatically as an income tax. Taxes are only assessed on any income that is consumed (spent on goods, services, etc.) while not taxing savings.ecause a consumption tax only taxes consumption, the good or service being consumed is largely irrelevant in reference to the allocation of resources. An income tax, however, creates a barrier between the value of a personâs labor (how much they earn from working) and what they actually receive (money after taxes).