The Principle of Horizontal Equity Is Satisfied When _____

question 6

Multiple Choice

The principle of horizontal equity is satisfied when _____.

• A)individuals receiving the same benefits end up paying the same in taxes
• B)the public interest is being met
• C)all individuals pay the same tax
• D)individuals with an equal ability to pay end up paying the same in taxes

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or business activity within a certain range.

Price Elastic

A measure of how much the demand for a product or service changes in response to a change in its price.

Sales Volume

The number of units of a product or service sold by a company in a specified period.

Local Dealerships

Businesses authorized to sell and service vehicles from specific manufacturers within a designated geographic area.