The ________ is based on the ability-to-pay principle.
A. progressive income tax
B. personal property tax
C. retail sales tax
D. proportional income tax
Answer: A
You might also like to view...
The difference between savings and investment is that a. investment is purchasing stock, while savings is putting money in a bank. b. investment is purchasing capital, savings is postponing consumption. c. investment is purchasing assets, while consumption is purchasing goods. d. investment increases output, while savings decreases output
Figure 4.1
The change in the aggregate quantity of goods and services demanded in the U.S. is based on the logic that as the price level falls,
a. real wealth falls, interest rates rise, and net exports fall. b. real wealth falls, interest rates rise, and net exports rise. c. real wealth rises, interest rates fall, and net exports fall. d. real wealth rises, interest rates fall, and net exports rise.
According to the Coase theorem, in the presence of externalities
a. private parties can bargain to reach an efficient outcome. b. government assistance is necessary to reach an efficient outcome. c. the assignment of legal rights can prevent externalities. d. the initial distribution of property rights will determine the efficient outcome.
Efficiency is another word for equity.
Answer the following statement true (T) or false (F)