Suppose a Canadian Member of Parliament Suggests That People with Higher

question 115

Multiple Choice

Suppose a Canadian Member of Parliament suggests that people with higher incomes should pay more in taxes.This refers to the concept of

• A)equality of outcomes.
• B)horizontal equity.
• C)vertical equity.
• D)proportionality.
• E)the benefit principle.

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Definitions:

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are deducted.

Short-Run Supply

The quantity of goods a firm is willing and able to supply to the market at different price levels in a short-term period, typically assuming some inputs are fixed.

Average Fixed Cost

The fixed costs of production (those that do not change with the level of output) divided by the quantity of output produced. It decreases as production increases.

Total Product

The total quantity of output produced by a firm over a given period as a result of inputs.