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Amanda signed up with the army right after she graduated from high school. She was soon sent to Afghanistan. During her two years in Afghanistan, she witnessed many gruesome catastrophes. Upon returning home, she felt detached and estranged from her old friends, was easily startled, and had difficulties sleeping due to the vivid memories of the horrific events. Amanda displays the symptoms of
Deadweight Losses
Economic inefficiencies that occur when the equilibrium in a market is not achieved or is distorted, typically resulting in lost welfare or inefficiency.
Ability-to-Pay Principle
A taxation principle that suggests taxes should be levied according to an individual's or entity's ability to pay, implying those with higher income should pay more taxes.
Taxes
Mandatory fiscal contributions or other forms of levies required from taxpayers by governmental bodies to support government expenditures and diverse public costs.
Regressive Tax
A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.
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