Which of the Following Taxes Is Most Clearly Based on the Benefits-Received

question 167

Multiple Choice

Which of the following taxes is most clearly based on the benefits-received principle of taxation?

• A)Corporate income tax
• B)Tax on gasoline
• C)Tax on personal income
• D)Payroll tax
• E)Value added tax

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Definitions:

Rule of Five

A statistical rule stating that if a sample size is very small (n=5), the median can serve as an estimate of the population mean under certain conditions.

Observed Frequency

The observed frequency is the actual number of times an event occurs in a dataset or experiment.

Expected Frequency

Expected frequency is a term in statistics indicating the number of times an outcome is anticipated to occur within a set of observations, based on probability.

Sampling Distribution

The distribution of probabilities for a statistic that is based on a random sample.