Answer to Question #113484 in Macroeconomics for Ayanda

Question

Which of the following statements is/are correct?

a) When the average tax rate increases as the tax base increases, the tax rate structure is progressive.
b) Requiring students to pay university fees, is an application of the ability-to-pay principle
c) When luxury goods are taxable by law, we can easily determine if the tax is fair or not..

Answer 1

Correct answer: a)When luxury goods are taxable by law, we can easily determine if the tax is fair or not..