Which of the Following Principles Encourages a Vertically Equitable Tax

question 89

Multiple Choice

Which of the following principles encourages a vertically equitable tax system?

• A) Pay as you go
• B) Economy
• C) Income effects
• D) Ability to pay principle
• E) None of these

---

Definitions:

Home-based Business

A business operated from the owner's home, leveraging the internet and digital tools for managing business activities and reaching customers.

Data Collision

When two computers send data at the same time and the sets of data collide somewhere in the transmission media.

Transmission Media

Refers to the physical pathways that connect computers, other devices, and people on a network, allowing data to be transmitted from one place to another.

External Network

A network that is outside of an organization's internal or proprietary networks, usually referring to the public internet.