What are the objectives of government taxation and spending?
What will be an ideal response?
There are four main objectives of government taxation and spending:
1. To correct market failures and externalities
2. To raise revenues
3. To redistribute funds
4. To finance operations
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The marginal propensity to consume is:
A. the change in consumer spending minus the change in aggregate disposable income. B. the change in consumer spending divided by the change in aggregate disposable income. C. the proportion of total disposable income that the average family consumes. D. increasing if the marginal propensity to save is increasing.
Jake and Harry each have 130 hours of college credit from Impressive University. Each has 30 hours of economics. Jake has a bachelor's degree, while Harry is 3 credits short of required physical education classes and therefore does not have a degree. Each of them has one year of experience as a market analyst for ABC Company. Assuming that the physical education class would not enhance Harry's
job performance, if Jake earns a higher salary than Harry, the ABC Company may subscribe to the a. human capital theory. b. discrimination theory. c. compensating differential theory. d. signaling theory.
Our balance on current account
A. has recently turned negative. B. has been negative for years. C. has recently turned positive. D. has been positive for years.
An indifference curve
A. may be upsloping or downsloping, depending on whether the two products are complements or substitutes. B. is positively sloped. C. must slope downward towards the right. D. is upsloping and is concave to the origin.