The Idea That People in Equal Conditions Should Pay Equal

question 249

Multiple Choice

The idea that people in equal conditions should pay equal taxes is referred to as

• A)horizontal equity.
• B)vertical equity.
• C)the ability-to-pay principle.
• D)the marriage tax.

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Definitions:

R&D

Research and Development (R&D) refers to the activities companies undertake to innovate and introduce new products and services.

Investment Opportunities

Prospects or options available for investors to put their money into securities, assets, or projects expected to yield a return over time.

Dividend Policies

Dividend policies are guidelines a company follows to decide the size and pattern of cash dividends to its shareholders over time.

Stock Splits

A corporate action to increase the number of outstanding shares, thereby reducing the price per share, without changing the market cap.