Discuss the three principles of equity applied to taxation in the text
1 . The principle of horizontal equity holds that equally situated individuals should be taxed equally
2 . The principle of vertical equity holds that unequals should be treated unequally.
3 . The benefits principle holds that those who reap the benefits from government services should pay the taxes to obtain the benefits.
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Which of the following characteristics is essential if a good is to be efficiently provided by a market economy?
a. The good should be subject to overuse. b. The good should be subject to the free rider problem. c. The good should be a common resource. d. The good should be excludable and rival in consumption
According to the Coase theorem, whatever the initial distribution of rights, the interested parties can bargain to an efficient outcome
a. True b. False Indicate whether the statement is true or false