A government is considering reducing the amount of taxes it collects from its citizens each year. Which of the following is the best argument against the tax reduction? a The government might have a smaller role in the economy. b The government will likely have to produce fewer goods and services with the reduced revenue.
A government is considering reducing the amount of taxes it collects from its citizens each year. Which of the following is the best argument against the tax reduction? a The government might have a smaller role in the economy. b The government will likely have to produce fewer goods and services with the reduced revenue.
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.10P
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Question 10
A government is considering reducing the amount of taxes it collects from its citizens each year. Which of the following is the best argument against the tax reduction?
a
The government might have a smaller role in the economy.
b
The government will likely have to produce fewer goods and services with the reduced revenue.
c
Citizens will not be able to purchase as many goods and services as they could previously.
d
People do not generally like taxes.
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