Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 4CQQ
To determine
The application on which the policy of toll tax is based.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Which principle states that taxes should be levied according to a taxpayer’s ability to pay?a) Benefit principleb) Horizontal equityc) Vertical equityd) Ability-to-pay principle.
Note : don't use chat gpt.
A tax system based on the ability-to-pay principle claims that all citizens should
A. pay taxes based on the benefits they receive from government services.
B. pay taxes based on consumption rather than income.
C. pay taxes based on saving rather than income.
D. pay the same amount in taxes.
E. make an equal sacrifice.
Which principle states that taxes should be levied according to a taxpayer’s ability to pay?a) Benefit principleb) Horizontal equityc) Vertical equityd) Ability-to-pay principle
Chapter 12 Solutions
Principles of Microeconomics
Knowledge Booster
Similar questions
- True or False: A progressive tax system is one in which the average tax rate increases as income increases. Don't use Aiarrow_forwardExplain tax abatements and how are they different from tax expenditures?arrow_forwardA progressive tax is: A. designed to take a greater percentage of the income of lower-income groups than of higher-income groups B. based on the benefits received principle. C. not based on the ability to pay principle D. designed so that everybody would be charged the same percentage of their income as taxes. E. designed to take a larger percentage of the income of higher-income groups than of lower-income groupsarrow_forward
- Explain the benefits principle and the ability-to-pay principle. What are vertical eguity and horizontal eguity?. Why is studying tax incidence important for determining the eguity of a tax system?arrow_forward3) Are excise taxes, like those on tobacco, gasoline, and alcohol, Progressive, Proportional, or Regressive? Why do you think they are?arrow_forwardWrite true or false for the following: a.The government modifies the taxation system sometimes to discourage spending so it can mop up over production in the economy. b.A progressive tax system increases income inequality. c. direct tax is said to be direct tax when the impact and incidence of a tax are on one and the same person. 2. Fill in the blanks with the correct terms ______is a tax where the _____ falls on one person and the _____arrow_forward
- Which of the following is not a canon of taxation? Pick a,b,c, or d a. Equity b. General Acceptability c. Convenience d. Certaintyarrow_forwardD) Most conservative criticisms about the ill-effects of taxes are exaggerated or untrue. Taxes are in fact good they are dues we pay to enjoy the numerous vital benefits that government provides for our society. You are a Jamaican citizen who believes that taxes are unjust make a strong case to support your point of view.arrow_forwardThe concept that people should pay taxes based on the benefits they receive from government services is called Group of answer choices the ability-to-pay principle. the benefits principle. horizontal equity. vertical equity.arrow_forward
- A toll is a tax on citizens who use toll roads. Thispolicy can be viewed as an application ofa. the benefits principle.b. horizontal equity.c. vertical equity.d. tax progressivityarrow_forwardD) Most conservative criticisms about the ill-effects of taxes are exaggerated or untrue. Taxes are in fact good they are dues we pay to enjoy the numerous vital benefits that government provides for our society. You are a Jamaican citizen who believes that taxes are unjust make a strong case to support your point of view. In Jamaicaarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning