The Concept That People Should Be Taxed So as to Result

question 9

Multiple Choice

The concept that people should be taxed so as to result in a socially desirable redistribution of income is known as the ________ principle.

• A) benefit
• B) ethical
• C) ability-to-pay
• D) confiscatory-tax
• E) tax reform

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Definitions:

Economic Profit

The disparity between a company's complete earnings and all its expenses, encompassing both direct and potential costs.

Resource Value

The worth of a resource, based on its utility in producing goods and services or its trade value in the market.

Market

A setting where buyers and sellers come together to exchange goods, services, or information.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, reflecting gains above production costs.