Table 12-16 The Table Below Provides Information on the 4 Households That

question 187

Multiple Choice

Table 12-16
The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes.

-Refer to Table 12-16.In this economy Tax C exhibits

• A) horizontal and vertical equity.
• B) horizontal equity but not vertical equity.
• C) vertical equity but not horizontal equity.
• D) neither horizontal nor vertical equity.

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Definitions:

Output

The quantity of goods or services produced within a given timeframe.

Thinking At The Margin

The concept involves making decisions based on the additional benefit or cost of the next unit of production or consumption.

Air Travel

The act of moving from one place to another through the atmosphere, typically using airplanes or other aircraft.

Bus Ticket

A document or electronic confirmation that permits a person to travel on a bus.