For States, It Is Essential to Have a Large Tax

question 6

Multiple Choice

For states, it is essential to have a large tax base for _______________.

• A)environmental awareness programs.
• B)public service works.
• C)economic development.
• D)private service industry.
• E)None of the above

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Definitions:

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good or service, the additional satisfaction gained from consuming an additional unit decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to what is observed with normal goods.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from consuming an additional unit decreases.

Total Satisfaction

The total amount of pleasure or utility that a consumer receives from consuming a certain quantity of goods or services.