Which of the following best reflects the ability-to-pay philosophy of taxation?

A. An excise tax on coffee
B. An excise tax on gasoline
C. A progressive income tax
D. A tax on residential property


Answer: C

Economics

You might also like to view...

The Solow growth model predicts that a lower labor force growth rate will lead to

A) a decreased steady state and higher break-even investment. B) higher productivity and a higher standard of living. C) a lower saving rate and decreased investment. D) a higher rate of dilution and lower break-even investment.

Economics

When a regression coefficient is significant at the .05 level, it means that

A) there is only a five percent chance that there will be an error in a forecast. B) there is 95 percent chance that the regression coefficient is the true population coefficient. C) there is a five percent chance or less that the estimated coefficient is zero. D) there is a five percent chance or less that the regression coefficient is not the true population coefficient.

Economics

Higher gasoline prices would likely raise the price of large, gas-guzzling automobiles

a. True b. False Indicate whether the statement is true or false

Economics

The following provides data for an economy in a certain year.  Consumption expenditures$50Imports$40Government purchases of goods and services$20Construction of new homes and apartments$30Sales of existing homes and apartments$40Exports$50Government payments to retirees$10Household purchases of durable goods$20Beginning-of-year inventory$10End-of-year inventory$20Business fixed investment$30Given the data, compute the value of GDP.

A. $140 B. $160 C. $130 D. $150

Economics