Suppose That Dave Has $200 to Spend Per Week and He

question 66

Multiple Choice

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 15 pizzas each week, what is the maximum number of magazines can he buy?

• A) 10
• B) 200
• C) 40
• D) 20

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Definitions:

Tax Burden

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

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public services, government obligations, and goods.

Benefits Principle

A concept that suggests taxes should be levied based on the benefits received by taxpayers, ensuring that those who benefit more from public services pay more taxes.

Ability-To-Pay Principle

The ability-to-pay principle is a tax theory suggesting that taxes should be levied based on the taxpayer’s capacity to pay, implying that wealthier individuals should pay more in taxes.