The concept that people should pay taxes based on the benefits they receive from government services is called

a. the ability-to-pay principle.
b. the benefits principle.
c. horizontal equity.
d. vertical equity.


b

Economics

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The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5.If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3000 cars to be imported, then domestic price of the car will be ________.

A. $6,000 B. $5,000 C. $10,000 D. $8,000

Economics

If positive externalities are present in the production of a good, then society will:

a. produce too much of the good since the marginal private benefit to consumers is less than the marginal social benefit. b. produce too little of the good since the marginal private benefit to consumers is greater than the marginal social benefit. c. produce too much of the good since the marginal private benefit to consumers is greater than the marginal social benefit. d. produce too little of the good since the marginal private benefit to consumers is less than the marginal social benefit.

Economics

If Volkswagen (a German-based firm) produces a car in Tennessee and exports it to Mexico, in which country’s GDP will the car be counted?

A. Germany’s, because Volkswagen is a German company B. Mexico, because that is where the car is purchased C. The United States, because that’s where it was built D. Both Mexico and the United States

Economics

Offshoring required which types of advances?

What will be an ideal response?

Economics