If Revenue from a Cigarette Tax Is Used to Pay

question 467

Multiple Choice

If revenue from a cigarette tax is used to pay for healthcare for people with lung cancer, the cigarette tax may be justified on the basis of

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

---

Definitions:

Power Relations

The dynamics of control, influence, and authority among individuals or groups within a society.

Metropolitan Area

An area made up of a highly populated central city and its less crowded neighboring areas, linked together by shared resources such as industry, infrastructure, and housing.

Highly Industrialized Country

A nation characterized by a significant level of industrialization, with a major portion of its economy based on manufacturing and technology.

Developing Countries

Nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries.