If a Poor Family Has Three Children in Public School

question 86

Multiple Choice

If a poor family has three children in public school and a rich family has two children in private school, the ability-to-pay principle would suggest that

• A)the poor family should pay more in taxes to pay for public education than the rich family.
• B)the rich family should pay more in taxes to pay for public education than the poor family.
• C)the benefits of private school exceed those of public school.
• D)public schools should be financed by property taxes.

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Definitions:

Income Inequality

The uneven distribution of income within a population, leading to a gap between the wealthiest and the poorest individuals or households.

Economic Inequality

The unequal distribution of income and opportunity between different groups in society.

Poverty Threshold

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country or area.

Minimum Annual Income

The lowest yearly income deemed necessary for a person or family to meet their basic living expenses.