Suppose Tax Shares Are Evenly Distributed for a Particular Service

question 30

Multiple Choice

Suppose tax shares are evenly distributed for a particular service at the amount of $100.00 per person. Which taxpayer suffers a political externality based on the taxpayer's marginal benefit for the service

• A) Taxpayer A has a marginal benefit of $100.00.
• B) Taxpayer B has a marginal benefit of $200.00.
• C) Taxpayer C has a marginal benefit of $90.00.
• D) Taxpayers B and C.

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if the stock is undervalued or overvalued.

Analytical Tools

Instruments or techniques used to analyze data or financial information, often for business or economic forecasting.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including balance sheet, income statement, and cash flow statement.

Days' Sales Uncollected

A financial ratio that indicates the average number of days it takes a company to collect payment after a sale has been made.