For Which Item(s)is/are the Ability-To-Pay Principle a Good Justification? I

question 105

Multiple Choice

For which item(s) is/are the ability-to-pay principle a good justification? I.the welfare state
II.government transfers
III.the income tax structure
IV.Pigouvian subsidies

• A) I and II only
• B) I and III only
• C) I,II,and III only
• D) I,II,III,and IV

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Definitions:

Annual Coupon Payments

The fixed interest payments made by a bond issuer to the bondholders at regular intervals over the life of the bond.

Positive Slope

In graph terms, a positive slope indicates that as one variable increases, the other variable also increases, demonstrating a direct relationship.

Economy

The system of production, distribution, and consumption of goods and services within a particular region or country.

Coupon Rate

A bond's annually paid interest rate, denoted as a percentage of its face value.