If One Was Concerned Only with Satisfying the "Benefit Principle

question 96

Multiple Choice

If one was concerned only with satisfying the "benefit principle," the ideal tax would be a(n)

• A)proportional income tax.
• B)user charge.
• C)sales tax.
• D)income tax.
• E)surcharge tax.

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Definitions:

Compounded Quarterly

The process in which interest is calculated and added to the principal amount every quarter of the year.

Deposits

Money placed into a bank account or given as a security for a contractual agreement.

Semi-annually

Occurring twice a year, typically every six months.

Quarterly Payments

Payments made four times a year, typically used in the context of dividends or loan repayments.