The Concept of Vertical Equity Is Derived from

question 37

Multiple Choice

The concept of vertical equity is derived from

• A) the proportionality of the income- tax system.
• B) the understanding that taxes generate distortions in the economy.
• C) the ability- to- pay principle.
• D) the benefit principle.
• E) fiscal federalism.

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Definitions:

Distribution Of Income

The way in which the total income of an economy is distributed among its population or the various participants in the economy.

Since 1960

A reference to a specific starting point in time, often used to denote the period for which statistical data or analyses are being considered.

Theories Of Poverty

Various explanations for the causes and persistence of poverty, including economic, social, and political factors.

Liberals And Conservatives

Terms used to describe the political spectrum, with liberals generally favoring progress, reform, and civil liberties, and conservatives typically supporting tradition, stability, and authority.