Which of the Following Statements Is Correct

question 21

Multiple Choice

Which of the following statements is correct?

• A)Vertical equity is the idea that taxpayers with similar abilities to pay taxes should pay the same amount.
• B)Horizontal equity is the idea that taxes should be levied on a person according to how well that person can shoulder the burden.
• C)A regressive tax would mean that high-income tax payers pay a larger fraction of their income in taxes than would low-income taxpayers.
• D)A proportional tax would mean that high-income and low-income taxpayers pay the same fraction of income in taxes.

---

Definitions:

Trait Theory

A psychological perspective that attempts to describe personality based on the presence and intensity of various traits, or consistent patterns of thought, emotion, and behavior.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning.

Reasonably Stable Patterns

Regular or consistent behaviors, thoughts, or emotions that remain relatively unchanged over time.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual that is distinct from one another.