If Two Families Are Identical with Respect to Size, Income

question 111

Multiple Choice

If two families are identical with respect to size, income, general expenses, etc., and are taxed equally, we say that there is

• A)horizontal equity.
• B)vertical equity.
• C)observance of the ability-to-pay principle.
• D)intergenerational equity.

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Definitions:

Four-firm Concentration Ratio

A measurement that indicates the combined market share of the four largest firms in an industry, used to assess the degree of competition within the market.

Herfindahl Index

A measure of market concentration that is used to determine the amount of competition among firms within an industry.

Import Competition

The competition between domestic products and foreign products in a domestic market, affecting local industries.

Herfindahl Index

A measure of the concentration of industries or markets, calculated as the sum of the squares of the market shares of the largest firms, used to assess the extent of competition.