Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth
a. is more efficient and more equal for society.
b. is more efficient but less equal for society.
c. is more equal but less efficient for society.
d. is less equal and less efficient for society.
c
You might also like to view...
A supply shock is an ________ event that shifts the aggregate ________ curve
A) external; supply B) external; demand C) internal; demand D) internal; supply
Which of the following is not true for a firm in perfect competition?
A) Price equals average revenue. B) Average revenue is greater than marginal revenue. C) Marginal revenue equals the change in total revenue from selling one more unit. D) Profit equals total revenue minus total cost.
When the average buyer of an insurance policy is likely to have higher risk than others in his class, this is known as
A. adverse selection. B. moral hazard. C. asymmetric information. D. an HMO.
Supply-side economics calls for:
a. lower taxes on businesses and individuals. b. All of the answers are correct. c. regulatory reforms to increase productivity. d. government subsidies to promote technological advance.