Table 12-13 The Table Below Provides Information on the 4 Households That

question 329

Multiple Choice

Table 12-13
The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes.
-Refer to Table 12-13. In this economy Tax B exhibits

• A)horizontal and vertical equity.
• B)horizontal equity but not vertical equity.
• C)vertical equity but not horizontal equity.
• D)neither horizontal nor vertical equity.

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Definitions:

Manufacturers

Entities engaged in the conversion of raw materials or components into finished goods for sale.

Liability

A legal responsibility or obligation, often financial in nature.

Negligence

Failure to take proper care in doing something, resulting in damage or injury to another.

Injured

Having suffered harm or damage, physically or emotionally.