Which of the Following Statements Is Correct

question 21

Multiple Choice

Which of the following statements is correct?

• A)Vertical equity is the idea that taxpayers with similar abilities to pay taxes should pay the same amount.
• B)Horizontal equity is the idea that taxes should be levied on a person according to how well that person can shoulder the burden.
• C)A regressive tax would mean that high-income tax payers pay a larger fraction of their income in taxes than would low-income taxpayers.
• D)A proportional tax would mean that high-income and low-income taxpayers pay the same fraction of income in taxes.

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Definitions:

Situational Attribution

The process of attributing someone's behavior to external factors, such as the environment or circumstances, rather than to internal personality traits.

Dispositional Attribution

The tendency to attribute people’s behaviors to their inner characteristics such as personality, beliefs, or attitudes.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values at the same time.

Cognitive Dissonance

A mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.