Consider a Public Good Such as Fire Protection Services

question 148

Multiple Choice

Consider a public good such as fire protection services.Rich people may benefit more than the poor from such a service because rich people stand to lose more from a fire that destroys property.In this case

• A)the ability-to-pay principle may support the rich paying more taxes than the poor, but not the benefits-received principle.
• B)the benefits-received principle may support the rich paying more taxes than the poor, but not the ability-to-pay principle.
• C)both the benefits-received and the ability-to-pay principles may support the rich paying more taxes than the poor.
• D)neither the benefits-received nor the ability-to-pay principles may support the rich paying more taxes than the poor.

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Definitions:

Probability

Refers to the statistical measure that quantifies the chance something will happen or is true.

Success Rate

The proportion or percentage of attempts that are successful, often used to gauge the effectiveness of a process or treatment.

New Racket

A fresh piece of equipment used in racket sports such as tennis, badminton, or squash.

Probability

The likelihood or chance of a specific event occurring, typically expressed as a number between 0 and 1.