A tax added to the camping fee at national parks that is used to maintain and upgrade camping facilities at national parks is a tax based on
A. the ability-to-pay principle.
B. the benefits-received principle.
C. vertical equity.
D. horizontal equity.
Answer: B
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A shortage occurs in a market when:
A) supply exceeds demand. B) price is lower than the equilibrium price. C) price is higher than the equilibrium price. D) the marginal utility of consumption is negligible.
________ are the portion of claims that policyholders must pay for out of their own pockets
A) Dividends B) Tokens C) Coupons D) Deductibles
Explain why a subsidy will not solve the problem of producing less than is socially optimal of a pure public good
If there are external benefits associated with the consumption of a good or service
A. the private demand curve will underestimate the true demand curve. B. the market demand curve will be the vertical summation of the individual demand costs. C. the private demand curve will overestimate the true demand curve. D. consumers will be willing to pay for all these benefits in private markets.