According to the Benefit Principle

question 6

Multiple Choice

According to the benefit principle,

• A)taxes should be distributed according to ability to pay.
• B)user charges are an ideal source of finance for government goods and services.
• C)the progressive income tax represents the ideal way of distributing taxes among citizens.
• D)flat-rate taxes are always the best kind.

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Definitions:

Antitrust Laws

Legislation aimed at preventing anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.

Monetary Award

A financial compensation granted to a party, often as a result of a legal settlement or judgement.

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at preventing anticompetitive practices in their incipiency, including price discrimination, exclusive dealing agreements, and mergers.

Celler-Kefauver Act

A U.S. law passed in 1950 aimed at preventing anti-competitive mergers and acquisitions that might reduce competition.