The Idea That Individuals Should Be Taxed in Proportion to the Marginal

question 110

Multiple Choice

The idea that individuals should be taxed in proportion to the marginal benefits that they receive from public goods is called

• A)the ability-to-pay principle.
• B)the horizontal-equity principle.
• C)the vertical-equity principle.
• D)the benefits-received principle.

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Definitions:

Final Sale Price

The total cost at which a product or service is sold to the consumer, including the base price plus any additional charges or fees.

Future Value

The value of an investment or a sum of money at a specified future date, accounting for specified interest rates or earnings over time.

Actively Managed

Refers to investment funds where portfolio managers make specific investments with the goal of outperforming an investment benchmark index.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professional investment managers.