If government chooses to use a head tax to finance a particular public good,then the
A) proportion of income paid in taxes is constant.
B) amount of tax paid by each taxpayer declines as income rises.
C) proportion of income paid in taxes declines as income rises.
D) proportion of income paid in taxes increases as income rises.
E) taxpayers who use the public good pay a greater amount than those who do not use it.
Correct Answer:
Verified
Q3: When dealing with pure public goods,
A) government
Q4: Which of the following items is an
Q5: To say that a particular good is
Q6: If government needs to raise revenue to
Q7: Which of the following is NOT a
Q9: In general,
A) government must always provide public
Q10: A nonexcludable good is one
A) for which
Q11: A head tax means the amount of
Q12: A private good possesses the characteristics of
Q13: A public good is one that
A) has
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