se a circular flow diagram to show how the allocation of resources and the distribution of income are affected by each of the following government actions. A 2-percentage-point reduction of the corporate income tax. An expansion of preschool programs for disadvantaged children. The levying of an excise tax on pollu

se a circular flow diagram to show how the allocation of resources and the distribution of income are affected by each of the following government actions. A 2-percentage-point reduction of the corporate income tax. An expansion of preschool programs for disadvantaged children. The levying of an excise tax on pollu

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 10SQP

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Use a circular flow diagram to show how the allocation of resources and the distribution of income are affected by each of the following government actions. a. The construction of a new high school. b. A 2-percentage-point reduction of the corporate income tax. c. An expansion of preschool programs for disadvantaged children. d. The levying of an excise tax on polluters
The Malaysian government plays a crucial role to ensure fair distribution of income and wealth in society through the implementation of tax-transfer schemes and social safety net programs. Are these fiscal instruments sufficient to address the issue of fair distribution? What constitutes fair distribution?
The concept that people should pay taxes based on the benefits they receive from government services is called Group of answer choices the ability-to-pay principle. the benefits principle. horizontal equity. vertical equity.
One tradeoff society faces is between efficiency and equity. Define each term. If Oman government redistributes income from the rich to the poor, explain how this action affects equity as well as efficiency in the economy.
Offer one reason why income inequality might increase productivity and efficiency in an economy. Offer one reason why income inequality might reduce productivity and efficiency in an economy. Explain your answers.
Discuss the effects of government economic policies such as a rise in the unemployment benefits on both employers and employees in the economy.
A tax system based on the ability-to-pay principle claims that all citizens should A. pay taxes based on the benefits they receive from government services. B. pay taxes based on consumption rather than income. C. pay taxes based on saving rather than income. D. pay the same amount in taxes. E. make an equal sacrifice.
Which of the following is most likely to make a country’s income distribution more equal? a. Establishing a national sales tax on food and clothing b. Establishing a progressive income tax system c. Eliminating excise taxes on luxury goods d. Proportionally decreasing the tax rate for all income groups e. Reducing the subsidy to education
Social Security taxes are regressive because :they apply only to rich people. they are applied to retired people only. they are not applied to income beyond a certain amount. they are applied to welfare recipients.
Those on the political left would tend to favor _____ government action and _____ taxation to reduce income inequality. more; lower less; higher more; higher less; lower
Which of the following is an example of the circular flow of income that shows the interdependence of households and firms? Group of answer choices Firms in the factor markets pay households in the form of wages, interest, rent and profit for the resources that households supplied. Households supply their resources to the firms in the product markets and, in turn, demand in the factors market the goods and services produced by firms. Households demand their resources from firms in the factors’ market and, in turn, supply in the product market the goods and services produced by firms. Firms supply resources that households demand in the factors’ market and, in turn, provide households with the goods and services produced for the product market.
Beef production is known to generate a lot of methane (from the digestive system of cattle), which is harmful to the environment. If the government levies an environmental tax on beef discuss how it would affect income distribution.