Author Question: Explain the idea behind the benefits-received principle of taxation and provide an example. What ... (Read 108 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
Explain the idea behind the benefits-received principle of taxation and provide an example.
 
  What will be an ideal response?

Question 2

Identify whether each of the following transactions will take place in the factor market or in the product market:
 
  a. Shondra buys a Harley-Davidson Softail motorcycle.
  b. Aimee works 20 hours a week at a grocery store.
  c. Gustavo sells a warehouse to a produce delivery company.
  d. Ocean Spray increases employment at its Middleboro, Massachusetts plant.



tjayeee

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

It is a theory of fairness which holds that taxpayers should contribute to government (in the form of taxes) in proportion to the benefits that they receive from public expenditures. The gasoline tax, paid by motorists, goes to the Federal Highway Trust Fund to build and maintain federal highways. The beneficiaries of public highways are thus taxed in rough proportion to their use of those highways.

Answer to Question 2

a takes place in the product market.
b, c, and d take place in the factor market.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

For a complete list of videos, visit our video library