The "Benefit Principle

question 56

Multiple Choice

The "benefit principle"

• A) is the main principle on which the Canadian tax system is based.
• B) requires that users of public goods are taxed in proportion to their ability to pay.
• C) is the main principle on which all tax systems are based.
• D) requires that users of public goods are taxed in proportion to their use of them.
• E) is the main principle on which horizontal equity is based.

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Definitions:

Marginal Revenue

The additional income gained from selling one more unit of a good or service.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, typically downward-sloping.

Marginal Revenue

The additional income earned by producing and selling one more unit of a product or service.