Which of the Following Statements About Horizontal Equity Is False

question 77

Multiple Choice

Which of the following statements about horizontal equity is false?

• A) Horizontal equity focuses on a rational and impartial measurement of the tax base.
• B) Horizontal equity focuses on the measurement of taxpayers' ability to pay.
• C) If persons with equal ability to pay a tax owe an equal amount of tax, the tax is horizontally equitable.
• D) None of these choices are false.

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Definitions:

Negotiable

Capable of being transferred or converted into cash or equivalent value, often used in reference to financial instruments.

Payable on Demand

Refers to a financial obligation that must be paid by the debtor when the creditor requests it.

Drawer

In the context of banking, the person who writes or issues a check or draft instructing the drawee to pay someone else.

Drawee

The party upon whom a cheque or draft is drawn, and who is expected to pay the amount specified to the payee.