Ch 9.1 - B

What are the three criteria for effective taxes?

• Equity, simplicity, and efficiency

• Equity, complexity, and efficiency

• Equity, simplicity, and effectiveness

• Equity, complexity, and effectiveness

What does equity mean in relation to taxes?

• Impartial and just

• Everyone paying the same amount

• Avoiding tax loopholes

• Wealthier people paying more

What is the second criterion for effective taxes?

• Efficiency

• Simplicity

• Equity

• Effectiveness

Which tax is an example of a complex tax?

• Sales tax

• Income tax

• Property tax

• Gasoline tax

What is the third criterion for effective taxes?

• Equity

• Simplicity

• Effectiveness

• Efficiency

What is the benefit principle of taxation based on?

• Ability to pay

• Benefits received

• Tax loopholes

• Income level

What is the ability-to-pay principle of taxation based on?

• Tax loopholes

• Income level

• Ability to pay

• Benefits received

What type of tax imposes the same percentage rate on everyone?

• Progressive tax

• Regressive tax

• Proportional tax

• Sales tax

What type of tax imposes a higher percentage rate on higher incomes?

• Proportional tax

• Progressive tax

• Regressive tax

• Sales tax

What type of tax imposes a higher percentage rate on low incomes?

• Progressive tax

• Proportional tax

• Regressive tax

• Sales tax