Question

some tax is paid only by people who benefit from a government program or service, such as a toll road. this approach to determining who should pay taxes follows the _______ principle.
a) full - cost
b) pay - as - you - go
c) ability - to - pay
d) benefits - received
question 4 (5 points)
how could the government fight inflation?
a) lower taxes
b) increase spending
c) add more unemployment insurance

Explanation:

• For the first question:
• The benefits - received principle states that those who benefit from a government program or service should pay the tax for it. In the case of a toll road, only the users (those who benefit) pay the 'tax' (toll).
• The full - cost principle is more about covering the entire cost of a project or service. The pay - as - you - go principle is about financing current expenditures with current revenues. The ability - to - pay principle is based on a person's financial capacity to pay taxes.
• For the second question:
• Lowering taxes (Option A) would put more money in people's hands, increasing demand and potentially fueling inflation.
• Increasing spending (Option B) also increases the money supply in the economy, which can worsen inflation.
• Adding more unemployment insurance (Option C) gives more money to unemployed people, increasing aggregate demand and inflationary pressure.
• None of the options A, B, or C are correct ways to fight inflation. But if we assume there is a mistake in the options and we consider the general knowledge of fiscal policy to fight inflation (contractionary fiscal policy: increasing taxes, decreasing spending), none of the given options here are correct. However, if we consider the options as they are (maybe a mis - print), but based on the analysis of each option's impact on inflation (all of them increase inflationary pressure), but if we have to choose from the given options (assuming some error in the question's options), there is no correct anti - inflation option. But if we consider the first question:

Answer:

• First question: D. benefits - received
• Second question: None of the options A, B, or C are correct ways to fight inflation. (If forced to choose based on the given options and their inflation - related impact, but there is a flaw in the options as presented. A correct anti - inflation fiscal policy would be the opposite of these options: decrease spending and/or increase taxes)