One of the Guiding Principles in Canada's System of "Fiscal

question 39

Multiple Choice

One of the guiding principles in Canada's system of "fiscal federalism" is that

• A)only provinces that are "federalist" should receive fiscal assistance from the federal government.
• B)each province is an independent fiscal entity.
• C)the tax base should be approximately equal in each of the provinces and territories.
• D)the true cost of provision of public goods to the various provinces of Canada should be recovered in tax revenue from the province receiving the benefit.
• E)individuals should have approximately the same access to public services,at broadly comparable tax rates,no matter where they live.

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Definitions:

Price Range

The spread between the highest and lowest selling price of a product or service over a certain period of time.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain time period.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied of a product responds infinitely to even the smallest change in price.

Inelastic

Refers to a situation where the demand or supply of a good or service is relatively unresponsive to changes in price.