Regulations

question 42

Multiple Choice

Regulations

• A) determine how a law is actually implemented.
• B) are written by Congress.
• C) set broad principles rather than specific rules about the implementation of legislation.
• D) are written in a way that is independent of the input of interested parties.
• E) All of the above statements are true.

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Definitions:

Progressive Taxes

Taxation that takes a larger percentage of income from high-income earners than from low-income earners, aimed at reducing income inequality.

Ability-To-Pay Principle

The concept that taxes should be levied according to an individual's or entity's ability to bear them, typically resulting in higher earners paying more taxes.

Lump-Sum Taxes

Taxes that are a fixed amount, not dependent on the taxpayer's income or activities, thus they do not distort economic decisions.

Economic Efficiency

A condition where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.