Which of the Following Taxes Is Most Clearly Based on the Benefits-Received

question 75

Multiple Choice

Which of the following taxes is most clearly based on the benefits-received principle of taxation?

• A)corporate income tax
• B)gasoline tax
• C)personal income tax
• D)payroll tax
• E)value added tax

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Definitions:

Demand

Refers to the quantity of a particular good or service that consumers are willing and able to purchase at various prices during a given period of time.

Price-Elastic

Describing a situation where the demand for a product significantly changes in response to changes in its price.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, normally downward sloping.

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.