The Levying of Licensing Fees for Automobiles Is an Example

question 98

True/False

The levying of licensing fees for automobiles is an example of taxation based on the ability-to-pay principle.

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Definitions:

Price Ceiling

A regulation that sets the maximum allowable price for a good or service to prevent prices from rising above a certain level.

Shortage

A market condition where the demand for a product exceeds the supply available at a specific price.

Minimum Wages

The lowest legal hourly pay that employers can offer to workers, intended to protect employees from unduly low earnings.

Federal Level

Pertaining to the national government, as opposed to state, local, or municipal levels, involving decisions, laws, and policies that affect the entire country.