Petrol Taxes That Are Typically Used for Highway Construction and Maintenance

question 92

Multiple Choice

Petrol taxes that are typically used for highway construction and maintenance are consistent with which of the following principles of taxation?

• A) the ability-to-pay principle
• B) the horizontal-equity principle
• C) the vertical-equity principle
• D) the benefits-received principle

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Definitions:

Imported Products

Products brought into one country from another for the purpose of sale, often subject to tariffs, quotas, or trade agreements.

Cultural Dimensions

Refers to the framework for cross-cultural communication, identifying and measuring the effects of a society's culture on the values of its members, and how these values relate to behavior.

Hofstede

A framework for cross-cultural communication, developed by Geert Hofstede, that analyzes cultures in terms of five (later six) dimensions such as power distance, individualism vs. collectivism, and uncertainty avoidance.

Business Relationship

A connection between two or more businesses that involves some level of mutual benefit, cooperation, or dependency.