Al Believes That SUVs Have Negative Social and Environmental Effects

question 127

Multiple Choice

Al believes that SUVs have negative social and environmental effects because of their increased carbon monoxide emissions. He proposes eliminating sales taxes on smaller automobiles in favor of higher sales taxes levied on SUVs. Al performs some calculations and comes to the conclusion that based on the current number of SUVs owned in the U.S., exactly the same amount of total sales tax will be collected under his reformed system. Which of the following concepts explains why Al's idea may not work?

• A)The ability to pay principle
• B)Horizontal equity
• C)Substitution effect
• D)Vertical equity
• E)None of the choices are correct

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Definitions:

Gender Differences

The disparities in characteristics, behaviors, roles, and psychological traits commonly associated with males and females.

Helping Behavior

Refers to voluntary actions intended to help others, with little or no benefit to oneself.

Uphold Reputation

The act of maintaining a good standing or image in the eyes of others, often through ethical behavior and performance.

Egoistic Motivation

A drive to act based on the impact of the action on one's self-interest, often disregarding others' needs or societal norms.