Table 12-13 The Table Below Provides Information on the 4 Households That

question 285

Multiple Choice

Table 12-13
The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes.
-Refer to Table 12-13. In this economy Tax C exhibits

• A)horizontal and vertical equity.
• B)horizontal equity but not vertical equity.
• C)vertical equity but not horizontal equity.
• D)neither horizontal nor vertical equity.

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Definitions:

Defense Mechanism

Unconscious psychological strategies brought into play by individuals to protect themselves from anxiety or to provide a refuge from a situation with which they cannot currently cope.

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Corporation

A corporation is a legal entity that is separate from its owners, providing them with limited liability. It is capable of owning assets, borrowing money, and being sued or suing.

Conflict

A struggle or contest between people with opposing needs, ideas, beliefs, values, or goals.