Describe the two basic philosophies of taxation fairness
The two basic philosophies of taxation fairness are the benefits-received principle and the ability-to-pay principle. The benefits-received principle argues that those who received the benefits of government spending programs ought to be the ones who pay for those programs or public goods and services. The ability-to-pay principle argues that the rich ought to pay more taxes because they can afford to do so.
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One of the limitation of Five Forces is that
a. These tools reduce producer surplus b. For one firm to increase profit, it takes it from other participants in the industry c. Does not provide a firm with sustainable competitive advantage d. Both b and c
If the MU of half gallon of milk is $3.50 and the MU of gallon of milk is $3.25, and they both sell for the same price, we would expect consumers to
a. increase their purchases of gallons of milk. b. increase their purchases of half gallons of milk. c. not change their purchasing habits. d. buy only gallons of milk.