For which item(s)is/are the ability-to-pay principle is a good justification? I.the welfare state
II.government transfers
III.the income tax structure
IV.Pigouvian subsidies

Question

Quizplus · Accepted Answer

The ability-to-pay principle is a good justification for the welfare state, government transfers, and the income tax structure as they are all designed to redistribute income and resources in a way that prioritizes those who are least able to pay or are in need of assistance. Pigouvian subsidies, however, are not necessarily designed to address income inequality or assist those with lower incomes, and so the ability-to-pay principle may not be as relevant.

For Which Item(s)is/are the Ability-To-Pay Principle Is a Good Justification