Suppose the government imposes a luxury tax on very expensive jewelry. This tax follows the ________ principle. Question 2 options: vertical equity benefits ability-to-pay horizontal equity fair-tax incidence

Suppose the government imposes a luxury tax on very expensive jewelry. This tax follows the ________ principle. Question 2 options: vertical equity benefits ability-to-pay horizontal equity fair-tax incidence

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter16: The Public Sector

Section16.4: Public Choice Theory

Problem 1YTE

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Question

Suppose the government imposes a luxury tax on very expensive jewelry. This tax follows the ________ principle.

Question 2 options:

	vertical equity
	benefits
	ability-to-pay
	horizontal equity
	fair-tax incidence

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