If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
a. basing its taxation on ability to pay
b. levying a proportional tax
c. able to afford fewer treatment facilities when liquor sales decrease
d. discouraging alcoholics from seeking treatment at government facilities
e. providing a service that the private sector cannot provide
Question 2
Taxes collected on the basis of the benefits-received principle
a. provide the states with their main sources of revenue
b. tend to redistribute income from rich to poor
c. collect the same total amount from each individual
d. connect the revenue side of the budget with the spending side of the budget
e. make it possible for government to spend money on activities that markets can't provide
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