The _______ Principle Implies That People with _______ Should Pay

question 140

Multiple Choice

The _______ principle implies that people with _______ should pay more taxes.

• A) ability-to-pay; greater benefits received
• B) benefits-received; higher incomes
• C) ability-to-pay; higher incomes
• D) benefits-received; fewer benefits

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Definitions:

Economic Science

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Trade-Offs

The sacrifice of one thing for another, recognizing that choosing some benefits necessitates giving up others.

Production Decisions

The determination of what, how, and for whom goods and services will be produced by a firm.

Output

The total amount of goods or services produced by a company, sector, or economy.