Services That Benefit All Citizens and Are Not Likely to Be

question 39

Multiple Choice

Services that benefit all citizens and are not likely to be produced by the voluntary acts of individuals are known as

• A)public goods.
• B)communism.
• C)social welfare.
• D)private benefits.
• E)volunteered materials.

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Definitions:

Horizontal Equity

Horizontal equity is a principle in taxation that dictates that individuals with similar income and assets should pay the same amount in taxes.

Vertical Equity

A principle in taxation that individuals with a higher ability to pay should contribute more taxes.

Progressivity

Refers to a tax system in which the tax rate increases as the taxable amount increases.

Irving Fisher

An American economist known for his work in the field of economics, including the theory of interest and the equation of exchange.