Which of the Following Is/are Based on an Ability-To-Pay Concept

question 114

Multiple Choice

Which of the following is/are based on an ability-to-pay concept?
I.A flat tax .
II.Johson City charges all households a flat fee of $25 per month for water usage.
III.Boone County recently established Route 89 as a toll road. All cars traveling from East Johnson City to Appleton pay $1.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Statements II and III are correct
• D)Statements I, II, and III are correct.
• E)None of the statements are correct.

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Definitions:

Rational Investor

An individual who makes investment decisions based on logic, available information, and an evaluation of the potential for profit or loss.

Interest Rate

Represents the cost of borrowing money, influencing economic activity by affecting consumers' and businesses' investment decisions.

Rational Investor

A theoretical person who makes decisions logically, based on all available information, aiming to maximize their utility or financial gain.

Interest Rate

The cost of borrowing money or the return on investment for savings, expressed as a percentage of the principal amount per time period.