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<h1>
Fortiori
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A fortiori, 'with all the more forces, Latin term used occasionally by economists. For example, suppose it is argued that a 4 per cent general increase in national income will tend to raise incomes generally and so probably lessen resistance to the legal removal of restrictive trade practices; then a fortiori a 5 per cent annual increase will make it still easier to outlaw restrictive practices <br /><br />A priori, a term used to describe a proposition the truth of which is known in other ways than from experience. The validity of a priori propositions is either accepted by intuition (as when a statement is said to be 'true by definition') or is the result of logical reasoning from such statements. The Quantity Equation in the theory of the value of money is an example of an a priori proposition. <br /><br />Ability to Pay. (a) The principle that taxes should be related to the income or wealth of the taxpayers. The implication is that the richer should be required to pay higher taxes than the poorer. This would cover not only progressive but also proportional and even some regressive income tax systems. (b) In American unionism, the ability of firms to give pay increases in accordance with their profitability. (c) The principle of charging what the traffic will bear, e.g. an exporter setting relatively higher prices in markets where he has little competition. These ideas imply an element of 'fairness or justice' whose meaning in economics is ambiguous Tax.
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<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
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