The benefits principle states that those who
a. pay the taxes should reap the benefits.
b. reap the benefits from government should pay the taxes.
c. are best able to pay should pay for what they receive.
d. pay taxes get the benefits they deserve.
b
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When the United States imposes a tariff on a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus
A) increase; smaller than; increase B) decrease; larger than; decrease C) decrease; larger than; increase D) decrease; equal to; increase
If price is initially above the equilibrium level
A) the supply curve will shift rightward. B) the supply curve will shift leftward. C) excess supply exists. D) all firms can sell as much as they want.
A budget constraint:
A. is the same across all individuals with the same income constraints. B. is different for each individual with the same income constraints. C. is the same across all individuals with the same tastes and preferences. D. is different for each individual with the same tastes and preferences.
The result that different auction styles in which the good goes to the winner with the highest valuation of the good generate the same amount of revenue is called
A) Revenue Equivalence Theorem. B) Marginal Revenue Theory. C) Auction Revenue Theory. D) First Bid Revenue Theorem.