If One Was Concerned Only with Satisfying the "Benefit Principle

question 110

Multiple Choice

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

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

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Definitions:

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.

Justification of Effort

The tendency for individuals to attribute a greater value to an outcome they had to put effort into achieving or acquiring.

Affect Heuristic

The tendency to consult one’s emotions instead of estimating probabilities objectively.

Estimating Probabilities

The process of determining the likelihood of a given outcome or event occurring.