The principle of vertical equity is satisfied when _____.
a. individuals with a greater ability to pay have higher taxes than individuals with a lower ability to pay
b. individuals receiving higher benefits from a government program pay higher taxes than those receiving lower benefits
c. taxes increase as family size increases
d. taxes on higher income individuals are more efficient than the taxes on lower income individuals
Question 2
An isoquant represents levels of capital and labor that
A) have constant marginal productivity.
B) yield the same level of output.
C) incur the same total cost.
D) All of the above.
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