Many economists believe that
A. once a negative income tax system was in place, the United States could increase economic equality indefinitely without reducing economic efficiency.
B. a negative income tax would be less efficient than the current welfare system.
C. replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality.
D. None of the above is correct.
Answer: C
You might also like to view...
Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is aggregate expenditure?
A) $15 million B) $23 million C) $25 million D) $27 million
A company that retains a high bond rating during a recession in which many other companies see their bond ratings cut will experience
A) an increased flow of funds into the market for its securities. B) an increased demand for its securities, resulting in a higher expected return. C) a decreased demand for its securities, resulting in a lower expected return. D) a decreased flow of funds into the market for its securities.
The combined Social Security tax rate was _____ up to incomes of _____
a. 15.3 percent; $87,000 b. 14.2 percent; $91,000 c. 11.7 percent; $83,500 d. 12.8 percent; $88,000
According to the Austrian view of the business cycle, expansionary monetary policy that pushes the interest rate to an artificially low level will
a. lead to an increase in long-term investments like houses and office buildings without generating the savings that will be required for their purchase in the future. b. lead to a reduction in long-term investments like houses and office buildings that will quickly throw the economy into a recession. c. lead to an increase in long-term investments like houses and office buildings that will enhance the long-term growth of the economy. d. lead to a reduction in investment, but there will be no impact on output, employment or the general level of prices.