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Bingel [31]
4 years ago
9

5. Categorize each of the following funding schemes as examples of the benefits principle or the ability-to-pay principle. a. Vi

sitors to many national parks pay an entrance fee. b. Local property taxes support elementary and secondary schools. c. An airport trust fund collects a tax on each plane ticket sold and uses the money to improve airports and the air traffic control system
Business
1 answer:
Simora [160]4 years ago
7 0

Answer:

b, c and a

Explanation:

Ability to pay principle refers to an economic principle that states that the amount of tax an individual pays should be <u>dependent on the level of burden the tax will create relative to the wealth</u> of the individual.

Based on the above definition, the first category will be:

1. Local property taxes support elementary and secondary schools. <em>This tax will definitely generate the biggest tax burden of the 3 cases in the scenario.</em>

2. An airport trust fund collects a tax on each plane ticket sold and uses the money to improve airports and the air traffic control system. <em>Obviously this tax will be of a higher burden than paying national park entrance fees but will not be as heavy as local property taxes</em>

3. Visitors to many national parks pay an entrance fee. <em>Park entrance fees will be of the lightest burden of the three cases in the scenario.</em>

<em />

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<h3>What is Net operating income?</h3>
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  • Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.

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Hence,  When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.

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Nadusha1986 [10]

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c. The medical center will prevail based upon the written contract

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Angelina_Jolie [31]

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