Tip Can Write 3 Pages of Term Paper or Solve

question 11

Multiple Choice

Tip can write 3 pages of term paper or solve 9 workbook problems in an hour, while Spot can write 4 pages of term paper or solve 4 workbook problems in an hour.If they each decide to work a total of 7 hours and to share their output, then if they produce as many pages of term paper as possible given that they produce 18 workbook problems,

• A)Spot will spend all of his time writing term papers and Tip will spend some time at each task.
• B)Tip will spend all of his time writing term papers and Spot will spend some time at each task.
• C)both students will spend some time at each task.
• D)Spot will write term papers only and Tip will do workbook problems only.
• E)Tip will write term papers only and Spot will do workbook problems only.

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Definitions:

Income

Financial gains, usually received at consistent intervals, from employment or investing.

Benefits Principle

A taxation theory suggesting that people should be taxed based on the benefits they receive from government services.

Progressive Tax

A tax system in which the tax rate increases as the taxable base amount increases, resulting in higher income individuals paying a larger percentage of their income in taxes compared to lower-income individuals.

Vertical Equity

A concept in taxation that argues taxpayers with a greater ability to pay taxes should pay more, compared to those with a lesser ability to pay.