The taxation principle that says people with equal incomes should pay equal taxes is called
A. Vertical equity.
B. A progressive tax system.
C. Horizontal equity.
D. A regressive tax system.
Answer: C
You might also like to view...
If the price of muffins, a normal good you enjoy, rises, then
A) both the income and substitution effects lead you to buy fewer muffins. B) the substitution effect which causes you to decrease your muffin consumption outweighs the income effect which causes you to increase your muffin consumption, resulting in fewer muffins purchased. C) the income effect which causes you to decrease your muffin consumption outweighs the substitution effect which causes you to increase your muffin consumption, resulting in fewer muffins purchased. D) the income and substitution effects offset each other but the price effect leads you to buy fewer muffins.
The short-run effect of a negative supply shock is
A) lower inflation and a declining output gap. B) lower inflation and an increasing output gap. C) higher inflation and a declining output gap. D) higher inflation and an increasing output gap.