Routledge Dictionary of Economics, 3rd Edition

A

AAA (G1)

The top credit rating of the securities issued by corporations and companies, as judged by the US rating agency Standard & Poor. This rating is based on the view that default is likely to be minimal.

See also: BB; BBB; C; D; DDD; Prime-1

abatement (Q2)

see marginal cost of abatement

ability to pay (H2)

1. The principle of taxation that persons with equal incomes and equal capacity to pay a tax should be taxed the same. This alternative to a BENEFIT TAX was suggested as early as the MERCANTILIST period because it appears to be a ‘just’ approach. John Stuart MILL argued that equality in taxation meant equality of sacrifice: this is ambiguous as the sacrifice may be in absolute, proportional or marginal terms. As sacrifice means loss ...