If There Were "Horizontal Equity" Between All Households in Canada,then

question 53

Multiple Choice

If there were "horizontal equity" between all households in Canada,then

• A)households of the same size would share the same tax burden.
• B)individuals in the same age group would share the same tax burden.
• C)households with identical abilities to pay would bear the same tax burden.
• D)there would be equity between different income classes.
• E)all households would pay the same percentage of income as tax.

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Definitions:

Annual Lease

A contract or agreement stipulating the rental terms of a property for one year, often specifying the rent amount, payment schedules, and other conditions.

Minimum Efficient Scale

The smallest level of production at which long-term average total costs are minimized.

Natural-Monopoly Situation

A market condition in which a single firm can produce output at a lower cost than can multiple firms, leading to a monopoly justified by efficiencies of scale.

Implicit Costs

The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.