The Progressive Structure of the Income-Tax System Is Based on the

question 120

Multiple Choice

The progressive structure of the income-tax system is based on the

• A) benefits-received principle.
• B) principle of diminishing returns.
• C) ability-to-pay principle.
• D) principle that "taxes are the price we pay for civilization."

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Definitions:

Marginal Benefit

The gain in satisfaction or usefulness from consuming or producing a further unit of a good or service.

Rational Choice

A theory in economics and sociology that states individuals choose the most advantageous option considering the costs and benefits.

Best Use

The most efficient or effective utilization of a resource or asset in order to achieve the desired result or maximum value.

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural resources, human resources, and capital.