Adam Smith's Concept of Vertical Equity Is Found in a Tax

question 60

Multiple Choice

Adam Smith's concept of vertical equity is found in a tax rate structure that is

• A)Regressive.
• B)Proportional.
• C)Horizontal.
• D)Progressive.
• E)Economical.

---

Definitions:

Competition

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume.

American Industry

Refers to the manufacturing and economic sectors of the United States which contribute to its Gross Domestic Product (GDP).

Influence Over Price

Influence over price describes the extent to which a producer or a group of producers can determine the selling price of their goods or services in the market.

Free Enterprise System

The free enterprise system is an economic system where private businesses operate in competition and largely free of state control, based on supply and demand.