The Principle That Those Benefiting More from the Activity Funded

question 43

Multiple Choice

The principle that those benefiting more from the activity funded by the tax pay more taxes is known as:

• A)The ability-to-pay principle
• B)The progressive tax principle
• C)The proportional tax principle
• D)The regressive tax principle
• E)The benefits-received principle.

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Definitions:

Budget Constraint

The limitation on the consumption choices of an individual or household due to limited income and the prices of goods and services.

Budget Constraint

A budget constraint outlines the combinations of goods and services that a consumer can purchase given their income and the prices of those goods and services.

DVDs

Digital Versatile Discs, a type of optical storage media used for video, audio, and data storage, now surpassed by digital streaming and download technologies.