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2 months ago

Question 1.

The idea that individuals should be taxed in proportion to the marginal benefits that they receive from public goods is called

• the ability-to-pay principle.

• the horizontal-equity principle.

• the vertical-equity principle.

• the benefits-received principle.

Question 2.

The government of Silverado raises revenue through a general income tax paid by all its residents to operate the city's marina. The marina is used by private boat owners. This method of raising revenue to operate the marina is

• consistent with the benefits-received principle.

• consistent with the ability-to-pay principle.

• inconsistent with the benefits-received principle.

• inconsistent with the ability-to-pay principle.
Source  Download
Microeconomics
Edition: 7th
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Answer 1

the benefits-received principle.

Answer 2

inconsistent with the benefits-received principle.
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