The U.S. tax system
A) reduces inequality and shifts the Lorenz curve away from the line of equality.
B) reduces inequality and shifts the Lorenz curve toward the line of equality.
C) increases inequality and shifts the Lorenz curve toward the line of equality.
D) increases inequality and shifts the Lorenz curve away from the line of equality.
B
You might also like to view...
A $100 million decrease in government expenditure on goods and services leads to an even larger decrease in aggregate demand because of
A) induced changes in consumption expenditures. B) automatic fiscal policy. C) induced changes in aggregate supply. D) discretionary fiscal policy. E) the reinforcing effect of monetary policy.
The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average total cost of producing 4 baseball hats per hour is
A) $1.67. B) $50.00. C) $52.50. D) More information is needed to answer the question.
A tax is efficient if
A) it is based on profits earned and not on wages. B) it imposes a small excess burden relative to the revenue it raises. C) it encourages saving and investment. D) individuals with the lowest incomes pay proportionately lower taxes than individuals with the highest incomes.
The demand for capital, as an input in production, will decrease if:
a. labor and capital are substitutes in production and the supply of labor decreases. b. the demand for the final good it produces increases. c. capital becomes more productive. d. the price of capital decreases. e. labor and capital are substitutes in production and the wage rate declines.