The benefit principle views _____.
A)a tax as the price that is paid for a government-supplied activity
B)all government activity as beneficial
C)all taxes as being beneficial if they are spent in the public interest
D)all Pareto-efficient moves as beneficial

Question

Quizplus · Accepted Answer

The benefit principle states that a tax is the price that is paid for a government-supplied service, implying that only those who benefit from the service should fund it. Therefore, option A is the best choice as it correctly captures the essence of the benefit principle.

The Benefit Principle Views _____