Which of the following statements about taxes and government spending is correct?
A. Despite the overall progressive tax system, government expenditures disproportionately
favor the rich and result in a system that is slightly regressive.
B. The progressive tax system is almost perfectly offset by regressive expenditures, making
the overall system proportional.
C. The regressive tax system is offset by expenditures directed toward lower-income
households, making the overall system proportional.
D. The overall system of taxes and spending is progressive, as over $1 trillion per year gets
transferred from upper-income households to lower- and middle-income households.
Answer: D
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Profit is maximized at the output at which marginal revenue exceeds marginal cost by the greatest margin.
Answer the following statement true (T) or false (F)
An upward sloping isoquant
A) can be derived from a production function with one input B) can be derived from a production function that uses more than one input where reductions in the use of any input always reduces output C) cannot be derived from a production function when a firm is assumed to maximize profits D) can be derived whenever one input to production is available at zero cost to the firm E) none of the above
Which of the following annual real GDP growth rates would be needed to prevent the U.S. unemployment rate from rising?
a. 3.3 percent b. 2.5 percent c. 10.0 percent d. 5.0 percent e. 1.0 percent
An increase in income in the United States would have what effect on the equilibrium exchange rate and equilibrium quantity of Canadian dollars in the foreign exchange market?
a. decrease in the exchange rate and decrease in the quantity b. decrease in the exchange rate and no effect on the quantity c. increase in the exchange rate and decrease in the quantity d. no change in the exchange rate and increase in the quantity e. increase in the exchange rate and increase in the quantity