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Analysis of Georgia's tax revenue sources from a pie chart.

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Problem

Analysis of Georgia's tax revenue sources from a pie chart.

Answer

D

Step-by-step solution

  1. Analyze the Pie Chart: The pie chart displays Georgia's tax revenue for 2016, broken down by source. Each slice represents a different type of tax or revenue, and its size corresponds to the percentage of the total revenue it contributes.
  1. Examine the Revenue Sources: The legend lists the various sources of revenue: Individual Income Tax (45%), Sales Tax (26%), Corporate Income Tax (4%), Motor Fuel (2%), Tobacco & Alcohol (4%), Motor Vehicle License (2%), Ad Valorem (4%), Interest, Fees (6%), Lottery Funds (3%), and Other (3%).
  1. Evaluate Option A (Sales taxes have increased): The pie chart shows the percentage of revenue from sales tax in 2016, which is 26%. This graph does not provide historical data, so we cannot conclude whether sales taxes have increased or decreased.
  1. Evaluate Option B (Corporate Income taxes have decreased): Similar to option A, the chart shows that corporate income tax accounted for 4% of revenue in 2016. There is no information in this graph to determine if this is an increase or decrease from previous years.
  1. Evaluate Option C (The state has too many revenue sources): The term "too many" is subjective and cannot be determined from the data presented. The graph simply shows the existing revenue sources and their proportions.
  1. Evaluate Option D (The state has many different revenue sources): By observing the pie chart and its legend, we can count the distinct categories of revenue. There are 10 listed categories (Individual Income Tax, Sales Tax, Corporate Income Tax, Motor Fuel, Tobacco & Alcohol, Motor Vehicle License, Ad Valorem, Interest, Fees, Lottery Funds, Other). This indicates a variety of revenue streams, supporting the conclusion that the state has many different revenue sources.
  1. Conclusion: Based on the number of distinct categories presented in the pie chart, the most accurate conclusion is that Georgia has many different revenue sources.