The Rationale for Ability-To-Pay Taxation and the Contention That Those

question 132

Multiple Choice

The rationale for ability-to-pay taxation and the contention that those with large incomes should pay more taxes both absolutely and relatively is that

• A) high-income receivers are generally in a better position to shift taxes than are low-income receivers.
• B) the transfer system is regressive and it is therefore essential to have an offsetting progressive tax structure.
• C) rational consumers spend their first dollars of income on the most urgently desired goods and successive dollars on less essential goods.
• D) taxes should be paid for financing public goods in direct proportion to the satisfaction an individual derives from those goods.

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Definitions:

Pons

A part of the brain located in the brainstem that is involved in the regulation of vital functions, such as sleeping, breathing, and coordination of movement.

Dreaming

The experience of envisioned images, sounds, or other sensations during sleep, particularly during REM sleep phases.

Reticular Activating System

A network of neurons located in the brainstem that regulates wakefulness and sleep-wake transitions.

Cerebellum

A region of the brain that plays a significant role in motor control, coordination, and balance.