​Which of the Following Is an Example of a Tax

question 128

Multiple Choice

​Which of the following is an example of a tax based on the benefits principle?

• A)​An income tax
• B)​A lump-sum tax assessed on household in town to finance the construction of soccer fields
• C)​A gasoline tax imposed by a city to be used to upgrade facilities local high school
• D)​A toll road

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Definitions:

Covariance

A measure of the degree to which two variables move together. In finance, it is used to measure how returns on two assets are related.

Regression Analysis

A statistical method used to examine the relationship between one dependent variable and one or more independent variables.

Slope

In mathematics and economics, the slope represents the rate at which a variable changes in relation to another variable, often depicted as the rise over run on a graph.

Beta

An indicator of the fluctuation or inherent risk of a security or portfolio compared to the overall market.