A U.S. presidential candidate promises to redistribute income and encourage economic growth. Why might these goals be in conflict?
a. The poor, on average, save more than the rich. Taxing the incomes of the rich to transfer to the poor will result in an increase in total savings.
b. Taxing the incomes of the rich to transfer to the poor will result in the rich saving more
c. Taxing the incomes of the rich to transfer to the poor will provide disincentives for work and capital accumulation.
d. Taxing the incomes of the rich to transfer to the poor will provide incentives for the rich to work more to make up for income lost to taxes.
c
You might also like to view...
The saying “the lower the price, the better” may not always be correct for an economy’s public interest because
A. people should have to pay for what they want. B. people will overuse something they perceive as being cheaper than the utility they receive for it. C. the government can no longer afford to provide all the goods and services it provides because it is slowly going broke. D. cheaper prices will make people buy less of other things.
A restaurant buys fish to offer as a daily menu special. The purchase of the fish by the restaurant is
A) an intermediate good. B) part of net exports if the fish was caught beyond the U.S. border. C) an investment. D) an example of government expenditures on goods and services. E) a consumption expenditure.
Explain the role of advertising in monopolistic competition. Describe how advertising by all firms in a monopolistically competitive industry impacts a firm's ATC curve, its MC curve, its demand curve, and its MR curve
What will be an ideal response?
The unemployment rate is
A. the number unemployed divided by the labor force. B. the number unemployed divided by the population. C. the difference between the population and the number employed divided by the population. D. the number unemployed divided by the number employed.