Using the "It's not fair if the result isn't fair" principle of fairness, an income tax designed to transfer wealth from the rich to the poor
A) increases efficiency and equity.
B) increases efficiency and does not affect equity.
C) decreases efficiency and increases equity.
D) decreases efficiency and equity.
C
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Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is equal to 1
This slope means that A) a change in x is associated with a bigger change in y. B) a change in x is associated with a smaller change in y. C) a change in x is associated with no change in y. D) a change in x is associated with an equal change in y.
The quantity sold in a market will increase if the government
a. decreases a binding price floor in that market. b. decreases a binding price ceiling in that market. c. increases a tax on the good sold in that market. d. More than one of the above is correct.
The benefits principle of taxation can be used to argue that wealthy citizens should pay higher taxes than poorer ones on the basis that
a. police services are more frequently used in poor neighborhoods. b. the wealthy benefit more from services provided by government than the poor. c. the poor are more active in political processes. d. the poor receive welfare payments.
A game in which the players explicitly coordinate their decisions to make themselves better off is a
A. negative-sum game. B. zero-sum game. C. noncooperative game. D. cooperative game.