Why Are Property Taxes in the Suburbs Typically High

question 30

Multiple Choice

Why are property taxes in the suburbs typically high?

• A) The cost of infrastructure is high in low-density communities.
• B) Better schools demand more tax-based funding.
• C) There is high demand for new housing.
• D) Residents have higher incomes.

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Definitions:

Public Policy

Public policy is a system of laws, regulatory measures, courses of action, and funding priorities concerning given topics, enacted and enforced by governmental entities.

Economic Efficiency

A condition in which all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Consumer Surplus

The gap between the price consumers are prepared to pay for a good or service and the price they actually end up paying.

Consumer Surplus

The gap between what consumers are prepared to spend on a good or service and the actual amount they end up paying.