Jasmine Bought a New Linda Lundstrom Coat for Both Style

question 113

Multiple Choice

Jasmine bought a new Linda Lundstrom coat for both style and warmth. Based on this information, which of the following statements is correct?

• A) By purchasing the coat, Jasmine was only satisfying her utilitarian needs.
• B) By purchasing the coat, Jasmine was only satisfying her hedonic needs.
• C) By purchasing the coat, Jasmine was satisfying her utilitarian and hedonic needs.
• D) By purchasing the coat, Jasmine was not satisfying any needs because people cannot satisfy needs, only wants.

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Definitions:

Proportional Tax

At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.

Benefits-received Principle

The concept that the amount of taxes an individual pays should be directly proportional to the level of benefits or services they receive from the government.

Ability-to-pay Principle

A taxation principle suggesting that taxes should be levied according to an individual's or entity's ability to pay, typically measured by income or wealth.