Which of the Following Situations Is a Clear Application of the Benefits

question 70

Multiple Choice

Which of the following situations is a clear application of the benefits principle of taxation?

• A)wealthier people are taxed more heavily 
• B)heavier vehicles are charged higher tolls on turnpikes 
• C)state government providing a free education to any child in the state 
• D)sales of measles vaccine exempt from sales tax

---

Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand.

Supply Curve

A graphical representation of the relationship between the price of a product and the quantity of the product that a supplier is willing and able to supply, holding all other factors constant.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, leading to a stable market condition.

Surplus

A surplus occurs when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices or an accumulation of unsold products.