Which of the Following Is Not Based on the Benefits-Received

question 216

Multiple Choice

Which of the following is not based on the benefits-received principle of taxation?

• A) charging a fee for the use of public golf courses
• B) differences between residential and out-of-state college tuition
• C) tax on gasoline
• D) toll booths on a highway
• E) charging a fee per bag to haul away garbage

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Definitions:

Tax Per Unit

A tax that is levied on a per unit basis, meaning for every unit of a good produced or sold, a certain amount of tax is paid.

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service does not reach, or cannot reach, its equilibrium state.

Tax Per Unit

Tax per unit is a fixed amount of tax applied to a product or service, regardless of its price, which directly affects the supply curve by increasing production costs.

Tax Levied

The process of imposing a tax by a governing authority on the citizens and organizations.