Explain the idea behind the benefits-received principle of taxation and provide an example
What will be an ideal response?
It is a theory of fairness which holds that taxpayers should contribute to government (in the form of taxes) in proportion to the benefits that they receive from public expenditures. The gasoline tax, paid by motorists, goes to the Federal Highway Trust Fund to build and maintain federal highways. The beneficiaries of public highways are thus taxed in rough proportion to their use of those highways.
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Refer to Scenario 18.1. When Curly made the loans to Moe, Larry, and Shemp, there were 500 coins' worth of receipts, so in total, the receipts were ________ backed by gold
A) 20% B) 40% C) 50% D) 100%
Marginal cost curves slope
A) upward because of increasing opportunity cost. B) upward because of decreasing opportunity cost. C) downward because of increasing opportunity cost. D) downward because of decreasing opportunity cost.
Why is the budget line negatively sloped?
What will be an ideal response?
A country wishing to establish a currency basket peg usually
A) chooses a small number of trading partner's currencies for that basket. B) chooses all of its trading partner's to be members of the basket. C) chooses six trading partners for inclusion. D) chooses only the most stable reserve currencies for inclusion.