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Horizontal Equity Is Achieved When Individuals of the Same Economic

question 30

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Horizontal equity is achieved when individuals of the same economic capacity pay the same amount of taxes over a given period.


Definitions:

Price Elasticities

Measures of the sensitivity of the quantity demanded or supplied of a good to a change in its price.

Tax Burden

The measure of the total amount of taxes that individuals, businesses, or other entities must pay relative to their income or consumption.

Elastic Supply

characterizes a market situation where the quantity supplied changes significantly in response to changes in price.

Tax Burden

The total amount of taxes imposed on an individual, corporation, or other entity by the government, often expressed as a percentage of income.

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