The Principle That Those Earning Higher Incomes or Those Owning

question 33

Multiple Choice

The principle that those earning higher incomes or those owning more property should pay more taxes is known as _____

• A) the ability-to-pay principle.
• B) the progressive tax principle.
• C) the proportional tax principle.
• D) the regressive tax principle.
• E) the desire of the government to spend more funds.

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Definitions:

Profits

The financial gain calculated as the difference between the revenue earned from sales and the expenses, taxes, and costs incurred in producing those sales.

Short-Run Supply Curve

A graphical representation showing the relationship between the market price of a product and the amount of it that producers are willing to supply in the short term.

Marginal Cost Curve

A graph showing how the cost of producing one more unit of a good varies as the quantity of production increases.

Short Run

in economics, refers to a period during which at least one factor of production is fixed, and firms can adjust only the variable factors.