What are the three ways that the government redistributes income in the United States? Briefly discuss each
What will be an ideal response?
The government redistributes income using income taxes, income maintenance programs, and subsidized services. Income taxes redistribute income because they are generally progressive so that higher-income households pay more in income taxes than lower-income households. In addition, poor households receive money from the income tax through the earned income credit. Income maintenance programs are programs such as social security, unemployment compensation, and welfare. These programs tend to give more income to poorer households than richer households. Finally, the government provides subsidized services, such as below-cost health care and below-cost schooling.
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Prisoners in World War II POW camps traded products for other products, a process referred to as
A) central planning. B) advantage exchange. C) barter. D) rationing.
Refer to the above figure. The profit maximizing price for a monopolistic competitor is
A) P1. B) P2. C) P3. D) P4.
Based on U.S. data for 2011, the poverty rate is the highest for which group of people?
a. children b. married couples c. female-headed households, no spouse present d. the elderly
Which of the following is a possible outcome of austerity policies?
A. Decrease in economic activity B. Increase in employment opportunities C. Decrease in budget deficits D. Increase in tax revenues