Liberals

question 27

Multiple Choice

Liberals

• A) argue that the role of the government should be minimized and carefully circumscribed.
• B) feel that economic and political freedom is undermined by reliance on the government.
• C) are skeptical about the government's ability to solve economic and social problems.
• D) assert that the government can and should overcome the limitations of the price system by regulating private activity.
• E) view the price system as an efficient noncoercive method of allocation.

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Definitions:

Tax Base

The total amount of assets or income that can be taxed by a governing authority, forming the essential revenue source.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, placing a higher tax burden on high-income earners.

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied according to an individual or entity's capacity to pay, generally implying that those with higher incomes should pay more tax.

Proportional Income Tax

A tax system where the tax rate remains constant regardless of the amount of income, thus taxing all income levels at the same percentage.