Which of the Following Taxes Are Most Clearly Based on the Benefits-Received

question 72

Multiple Choice

Which of the following taxes are most clearly based on the benefits-received principle of taxation?  

• A) corporate income taxes 
• B) gasoline taxes 
• C) personal income taxes 
• D) payroll taxes

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Definitions:

Coefficient of Variation Risk

A statistical measure used to assess the risk of an investment by calculating the ratio of the standard deviation to the mean return, indicating variability in relation to the expected return.

Unsystematic Risk

Also known as specific risk, it refers to the risk associated with individual assets, distinct from the market's overall movements.

Systematic Risk

The inherent risk associated with the entire market or market segment, which cannot be mitigated through diversification.

Beta Coefficient

An indicator of how much a stock's price fluctuates compared to the entire market.